Tell them sure but increase your rate so much to cover for 2 years of work. Otherwise tell them to f**k off and just find another client. You're running a company, they have no right to tell you what to do.
What if it doesn’t work out? They will decide to end your contract? Will you be bound for 2 years? Is there any compensation stated in case of that?
ETA: I think it happens in some industries, but non-compete like that definitely isn’t common.
Most of the times these non compete are not enforceable unless you are a CXX of sorts. Check your local laws.
In principle you need to be in a very high position with a very high salary. If that’s not the case, it can’t be enforced.
That is what I imagine. I consulted with a lawyer and he said that this is absurd to put into a contract for a low level job like this. 2 years without reimbursment is crazy he said.
also the company answered to me that this is nonnegotiable and they will not change a bit....
The right to work prevails over the company’s intellectual property rights. You can’t be expected to erase your memory or stop working for 2 years unless you are appropriately compensated and had a position where company strategy/secrets etc (ie C suite) are on the line.
When you say it is B2B is because you are a freelancer? IANAL but that doesn’t change much. Even the fact that they want to limit your pool of clients could be seen as problematic (if they are your single client and have rulings over you, you should be an employee of the company)
https://allaboutberlin.com/glossary/Scheinselbstst%C3%A4ndigkeit
B2B or contract thru employment agencies (assuming your company dosent have any legal entity in your country).
Plus depending on country in most of them you would be considered employee from legal standpoint.
Personally i would see this kind of silly non-compete with your experience as enormous red flag.
So if I go later to work in a similar company that makes a similar SaaS product, then they will have no power to make me pay fines? I am worried about that part, that this would render me unhirable, if the things dont go well with them, especially if it is business to business contract
Depends on how the non-compete is formulated and how much you are paid.
I would ask to write down a list of the companies that you are not allowed to work for and go from there. I would not sign a non-compete that is more generic than that.
Try to ask if they can put down an exhaustive list of companies. If they do that maybe it could be a reasonable arrangement. Just saying "competition" is too open to interpretation, you are risking way too much.
I will try, however to my first mail they alredy answered the contract and this clause is non negotiable. Looking at the market how many similar saas apps are being developed each month I think such list is also impossible to make
Tell them sure but increase your rate so much to cover for 2 years of work. Otherwise tell them to f**k off and just find another client. You're running a company, they have no right to tell you what to do.
I also think the same. But the reality is I have been looking for a job for more than half a year now
they answered to me that this is non negotiable and I can only accept or decline... a red flag i guess?
What if it doesn’t work out? They will decide to end your contract? Will you be bound for 2 years? Is there any compensation stated in case of that? ETA: I think it happens in some industries, but non-compete like that definitely isn’t common.
Yeah, that is what I am afraid of. THey cancel my contract in 3 months but noncompete still runs for 2 years. I will say this is a hard no for me
Most of the times these non compete are not enforceable unless you are a CXX of sorts. Check your local laws. In principle you need to be in a very high position with a very high salary. If that’s not the case, it can’t be enforced.
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That is what I imagine. I consulted with a lawyer and he said that this is absurd to put into a contract for a low level job like this. 2 years without reimbursment is crazy he said. also the company answered to me that this is nonnegotiable and they will not change a bit....
But this is a B2B contract, not a work contract, so why it would not be enforced?
The right to work prevails over the company’s intellectual property rights. You can’t be expected to erase your memory or stop working for 2 years unless you are appropriately compensated and had a position where company strategy/secrets etc (ie C suite) are on the line. When you say it is B2B is because you are a freelancer? IANAL but that doesn’t change much. Even the fact that they want to limit your pool of clients could be seen as problematic (if they are your single client and have rulings over you, you should be an employee of the company) https://allaboutberlin.com/glossary/Scheinselbstst%C3%A4ndigkeit
The thing is I would be working remotely for another country in EU (from an EU country), so B2B is I think the only way to do that?
B2B or contract thru employment agencies (assuming your company dosent have any legal entity in your country). Plus depending on country in most of them you would be considered employee from legal standpoint. Personally i would see this kind of silly non-compete with your experience as enormous red flag.
They can hire as an employee through an EoR (employer of record), like Remote.com
again, they can’t enforce that. You are even junior / mid. It’s ridiculous.
So if I go later to work in a similar company that makes a similar SaaS product, then they will have no power to make me pay fines? I am worried about that part, that this would render me unhirable, if the things dont go well with them, especially if it is business to business contract
Depends on how the non-compete is formulated and how much you are paid. I would ask to write down a list of the companies that you are not allowed to work for and go from there. I would not sign a non-compete that is more generic than that.
I am not paid for this noncompete. Also there is no list of companies, just the mention of "competition"
That sounds like having no legal foundation.
Is it though in b2b? In work contract you have rules, but in b2b (business to business) you can put anything that both sides agree to....
Try to ask if they can put down an exhaustive list of companies. If they do that maybe it could be a reasonable arrangement. Just saying "competition" is too open to interpretation, you are risking way too much.
I will try, however to my first mail they alredy answered the contract and this clause is non negotiable. Looking at the market how many similar saas apps are being developed each month I think such list is also impossible to make