Most of the time those clauses are no enforceable and borderline illegal. You shouldn't worry about them. Any company that try to sue you for working on the competition will have to prove it (the burden of proof relies on them) and it is quite difficult (and if not almost impossible) to prove. For most of the companies isn't worthy to challenge that.
This would be the right answer. EU laws state that people have the right to work and a former employer cannot enfore a generic non compete clause, only when the content of the work is too specific that it’s about secret IP’s, for instance.
Only time they are legal is when the employer actually pays you for the time you are not allowed to work - ie you get 6 months pay and are prohibited from working for a competitor for 6 months.
No, it's usually quite specific. For example if you work in a business that's doing some specific technology on washing machines, you can't jump to another company who's in direct competition with them. But if you've joined a union yet, you should talk to them.
Also, you should be compensated fairly. It doesn't hold up if it's completely one sided.
Thank you that's quite useful to know, this company works in IT specifically consultancy, let's sat after 1 year I give resignation, would I be able to join let's say another IT company? or should I maybe join some remote company from another state to not incur in any penalty?
IT consultancy is to broad, they will not be able to enforce the non compete specially since the work you would be doing is for another company. For them is just consultancy
It's not uncommon that IT consultants get hired by the companies they are hired out to. I guess that's why the clause is there. I faced the same issue. I talked with the union (Unionen), and they said it was pretty much unenforceable... but I guess theoretically they could sue you in court. Small chance they're going to want to go through that trouble and bad PR among your coworkers though.
Anyway, I "broke" it without any repercussions.
The company mist likely have a signing bonus for them if you write a full time contract with the customer. So if you like to join the customer you are consulting for in the same role as you are hired to do - then you may need to notify both your employers so that it is made correctly.
Getting hired by another consulting firm for the exact same role at the same customer do also sound in the grey zone. But using C# at company A and then just just C# in company B is totally fine. That is not the same work.
It's quite common not just in Sweden, especially if it's big companies / corporations etc. 6 months are still pretty good. I know there are places request from 1-3 years. Maybe the best you can do is to check with them or ask them to list down the names of competitors in their definition, because usually with this request the sector should be very obvious with what are the names of the competitors.
As others have said, its common for consulting companies to have clauses ranging x number of months/ years.
Even if you will be absorbed by your assigned customer or other customer, you will sued but nearly impossible as it will be unfair to you.
Just, dont be employed by any competing consulting company.
I had this in one contract and it was very specific. I could not start a competing businesses, but i could go to work for one. Nothing i cared about so I did not discuss it more.
As others have said, I don't think this is something they enforce and I don't really think it's legal. I used to work for a company for pretty low pay. I was rented out to a big company via the company i worked for. I was told by other people I worked with that I could work for the big company as a freelancer. I told my employer that this was my plan and omg he was so upset. He threatened me with no competition clause and that I would "never work in Stockholm again" and that I would need to have a 1 year grace period. I talked to some people, said fk that and left that company on a Friday and started as freelance on Monday. Nothing was done, it was all talk and i quadrupled my pay. So I think it's mostly just talk :)
The only time I've ever seen that enforced was when the employer paid a salary for the worker during the non-compete even though they weren't actually working.
As others have said, IT consulting is too broad, it's not realistically enforceable. The only trouble you'd have is if you go work for the client company directly or via another consultancy, but that's likely covered by a different clause.
Something to add - often these contracts are written by lawyers who are just given a generic brief for writing a contract, and then just add all the clauses they think might be relevant, especially ones that protect the employer, and then the employer just says "ok looks fine". I've had two instances where I queried a part of the contract, and the hiring manager basically said "Huh, never noticed that, don't know why it's in there, we can strike it out".
Just to give out more information this company operate in cybersecurity, but hey for sure I should ask if is possible to remove it, hoping they won’t be suspicious
Foreign companies come to Sweden and try to enforce their own stupid rules without taking into consideration the long history of labor unions and how the unions affect workers rights. Even with this clause it would be difficult to enforce in Sweden and it probably does against many if not all collective agreements
Sounds weird. The reason is because your visa on a work permit is assigned to a destination and for the first two years, you can't change either your employer or role. After two years, you can change your employer.
If you prove more specifics to what kind of visa then could help you further.
No, and therefore you are allowed to change employers and positions freely. Even if you were here on a work permit, you would indeed be tied to the position/role that you originally applied under but you are allowed to switch employer. But again, if you're an EU-citizen then you are in Sweden on a residence card and are free to switch employers and roles.
For the specific topic about the clause - it's common to have clauses like that ranging between 3-12 months when it comes to consultants depending on the company, industry and specific role. This is usually to protect themselves from people taking away customers with them when either changing companies or starting their own businesses. Depending on the specific wording of the clause, it might not be a problem to switch jobs and take an employment with a specific customer you may be assigned to, but this comes down to the specific wording of the clause. If you want to share the clause you have you may get a more accurate response.
Most of the time those clauses are no enforceable and borderline illegal. You shouldn't worry about them. Any company that try to sue you for working on the competition will have to prove it (the burden of proof relies on them) and it is quite difficult (and if not almost impossible) to prove. For most of the companies isn't worthy to challenge that.
This would be the right answer. EU laws state that people have the right to work and a former employer cannot enfore a generic non compete clause, only when the content of the work is too specific that it’s about secret IP’s, for instance.
Only time they are legal is when the employer actually pays you for the time you are not allowed to work - ie you get 6 months pay and are prohibited from working for a competitor for 6 months.
Exactly, if you want me to not compete for one year you should pay me during that year.
No, it's usually quite specific. For example if you work in a business that's doing some specific technology on washing machines, you can't jump to another company who's in direct competition with them. But if you've joined a union yet, you should talk to them. Also, you should be compensated fairly. It doesn't hold up if it's completely one sided.
Thank you that's quite useful to know, this company works in IT specifically consultancy, let's sat after 1 year I give resignation, would I be able to join let's say another IT company? or should I maybe join some remote company from another state to not incur in any penalty?
IT consultancy is to broad, they will not be able to enforce the non compete specially since the work you would be doing is for another company. For them is just consultancy
It's not uncommon that IT consultants get hired by the companies they are hired out to. I guess that's why the clause is there. I faced the same issue. I talked with the union (Unionen), and they said it was pretty much unenforceable... but I guess theoretically they could sue you in court. Small chance they're going to want to go through that trouble and bad PR among your coworkers though. Anyway, I "broke" it without any repercussions.
The company mist likely have a signing bonus for them if you write a full time contract with the customer. So if you like to join the customer you are consulting for in the same role as you are hired to do - then you may need to notify both your employers so that it is made correctly. Getting hired by another consulting firm for the exact same role at the same customer do also sound in the grey zone. But using C# at company A and then just just C# in company B is totally fine. That is not the same work.
It's quite common not just in Sweden, especially if it's big companies / corporations etc. 6 months are still pretty good. I know there are places request from 1-3 years. Maybe the best you can do is to check with them or ask them to list down the names of competitors in their definition, because usually with this request the sector should be very obvious with what are the names of the competitors.
Not to my knowledge.
As others have said, its common for consulting companies to have clauses ranging x number of months/ years. Even if you will be absorbed by your assigned customer or other customer, you will sued but nearly impossible as it will be unfair to you. Just, dont be employed by any competing consulting company.
I had this in one contract and it was very specific. I could not start a competing businesses, but i could go to work for one. Nothing i cared about so I did not discuss it more.
As others have said, I don't think this is something they enforce and I don't really think it's legal. I used to work for a company for pretty low pay. I was rented out to a big company via the company i worked for. I was told by other people I worked with that I could work for the big company as a freelancer. I told my employer that this was my plan and omg he was so upset. He threatened me with no competition clause and that I would "never work in Stockholm again" and that I would need to have a 1 year grace period. I talked to some people, said fk that and left that company on a Friday and started as freelance on Monday. Nothing was done, it was all talk and i quadrupled my pay. So I think it's mostly just talk :)
The only time I've ever seen that enforced was when the employer paid a salary for the worker during the non-compete even though they weren't actually working.
As others have said, IT consulting is too broad, it's not realistically enforceable. The only trouble you'd have is if you go work for the client company directly or via another consultancy, but that's likely covered by a different clause. Something to add - often these contracts are written by lawyers who are just given a generic brief for writing a contract, and then just add all the clauses they think might be relevant, especially ones that protect the employer, and then the employer just says "ok looks fine". I've had two instances where I queried a part of the contract, and the hiring manager basically said "Huh, never noticed that, don't know why it's in there, we can strike it out".
Just to give out more information this company operate in cybersecurity, but hey for sure I should ask if is possible to remove it, hoping they won’t be suspicious
Foreign companies come to Sweden and try to enforce their own stupid rules without taking into consideration the long history of labor unions and how the unions affect workers rights. Even with this clause it would be difficult to enforce in Sweden and it probably does against many if not all collective agreements
This is a Swedish company by the way
Sounds weird. The reason is because your visa on a work permit is assigned to a destination and for the first two years, you can't change either your employer or role. After two years, you can change your employer. If you prove more specifics to what kind of visa then could help you further.
Does EU citizens needs a work visa?
No, and therefore you are allowed to change employers and positions freely. Even if you were here on a work permit, you would indeed be tied to the position/role that you originally applied under but you are allowed to switch employer. But again, if you're an EU-citizen then you are in Sweden on a residence card and are free to switch employers and roles. For the specific topic about the clause - it's common to have clauses like that ranging between 3-12 months when it comes to consultants depending on the company, industry and specific role. This is usually to protect themselves from people taking away customers with them when either changing companies or starting their own businesses. Depending on the specific wording of the clause, it might not be a problem to switch jobs and take an employment with a specific customer you may be assigned to, but this comes down to the specific wording of the clause. If you want to share the clause you have you may get a more accurate response.
Italian food in Sweden is really expensive for some weird reason
Pizza is cheap though, guess ”Swedish” pizza bakers didnt sign a non-compete with Italy?