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competition clause

Anonymous A asked on Oct 28, 2018 - 4 answers

Hi Experts,

I just received my contract as a starter at one of the MBB's. Everything seems alright except for the non-compete clause which seems absurdly broad. It covers everything from all worldwide clients to potential associated businesses for a period of 12 months. If they would enforce the clause after me leaving it would mean that I am unemployed for a year.

So is this normal or is it possible to change specific clauses?

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Benjamin replied on Oct 29, 2018
ex-Manager - Natural and challenging teacher - Taylor case solving, no framework
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Hi,

Unless you are a very specific and expert profile, your contract is absolutely standard. So not so open to negotition on that dimension.
In the end just relax about it :

- This clause is never applyed, and if it was, they would have to pay you a penalty

- Even if they wanted to apply it, this would be very difficult to prove in case you work at competition that you would work at same clients potentially interfering with this clause, given the confidentiality of the engagements

- given the turnover of these firms, I don't think they spend too much time spying on the next move of each alumnis.

Best
Benjamin

Guennael
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replied on Oct 28, 2018
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Congrats on the offer. Difficult to know without knowing which country... at least here in the US, non-compete closes have little to no value when they would also limit your ability to earn a comparable living.

In any case - probably little you can do, these contracts are cookie-cutter. I have never heard of MBB going after a former employee btw, this would look terrible on them. Would definitely not worry

Vlad
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replied on Oct 29, 2018
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Hi,

Just relax about it. It's a standard form and no one will ever sue you since alums are their future clients. I believe it's a standard form more relevant for the partners who can potentially take the clients to a different company.

Best!

Alessandro
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replied on Oct 30, 2018
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Don't worry - I am sure if you just check linkedin, you'll see that dozens/hundreds of people from your MBB office have switched to other firms technically covered by the non-compete.

As others have said, it's extremely unlikely they'd enforce it, so they just have it as a safety net "in case".

Congrats on the offer!