Which employment contract is binding?
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Which employment contract is binding?
I signed an employment contract 14 years ago with a non-compete clause. The
contract did not have an end date. We were acquired by another company 6 years
ago and signed new employment contracts with non-complete clauses. These
contracts were for 3 years. So, the new company’s contract is up, we have not re-
signed, and I am considering going elsewhere. Will the original contract still be
enforceable since it has no end date?
Asked on July 12, 2017 under Employment Labor Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
The original contract is not enforceable. A contract must have a time for performance. It cannot be indefinite.
With regard to non-competitive provisions, that provision cannot be indefinite. It must be limited in time, scope, duration and proximity.
Since the company was acquired and the new company issued its own employment contract, that contract should supercede the pre-existing employment contract.
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