Restrictions
Conflict of interest
Defines what counts as a conflict. Employers define this much more broadly than 'working for a direct competitor', and their definition is the one that binds you.
Where to find it
The handbook or code of conduct, and often echoed in the employment agreement.
Search your document for: conflict of interest competing competitor adverse interest
Which version do you have?
Wording paraphrased for teaching. Yours will differ; the shape is what matters.
Usually fine
“Employees shall not engage in activities that compete with the Company's products or services.”
Narrow and testable. A role in a genuinely unrelated industry sits outside it.
Needs a question
“Employees shall avoid any activity that conflicts with, or appears to conflict with, the interests of the Company, including work for customers, suppliers or partners.”
Wide. Customers and suppliers catch people out constantly, because two companies with no market overlap can still have a commercial relationship. Check the customer list before you accept anything.
Stop here
“Employees shall not, without written consent, be employed by or provide services to any other business enterprise.”
A conflict clause acting as an outside-employment ban. Read it as one.
Ask this before you sign
- Who are the company's largest customers and suppliers?
- Does the policy cover companies the business has announced plans to enter?
- Is there a disclosure process that resolves a potential conflict?
What this clause means when you hold two roles
Reading the clause is one thing; knowing how it interacts with a second employer's agreement, where it sits in the self-audit, and what to do when two contracts disagree is the part that takes the work. That analysis, the agreement-review worksheet and the searchable library live in the course.
More in Restrictions
- Non-competeRestricts where you can work after you leave, and sometimes during employment. Enforceability varies enormously by jurisdiction, and several US states sharply limit or ban them.
- Non-solicitationPrevents you recruiting the company's employees or approaching its customers, usually for a defined period after you leave.
Generic wording written for teaching, not copied from any real agreement. Employment law varies by country and state. This is not legal advice — see the disclaimer.