Legal Question in Employment Law in Georgia

Clause in contract that restricts a customer from hiring ex-employees of the com

Can a company restrict a customer from hiring an ex-employee? In the contract where a manufacturing company (customer) purchases software license from an ERP software company, a clause states that the customer can not hire an employee or ex-employee of the (ERP) company without permission of the (ERP) company.

I was laid off from the ERP software company as part of a cost cutting measure. Can they stop me from working for a customer who is using their software because of their contract? I do not have a non-compete agreement with the ERP company. I would be a user of the software just as any other employee of the company. The company is in no way a competitor of the ERP company.

The manufacturing company (customer) is located in Georgia.


Asked on 12/27/01, 3:18 pm

1 Answer from Attorneys
Jeff Kent Kent & Merritt, P.A.

Re: Clause in contract that restricts a customer from hiring ex-employees of the

It really depends on the language in the contract between your former employer and the customer. If properly drafted, yes they can prohibit you from working for them. Have you approached your former company about allowing you to work for this customer? Have you had any discussions with the customer as to whether or not they will be willing to hire you and deal with your former employer on their own? These could be important points.

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Answered on 12/27/01, 3:24 pm


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