When Hasim was hired as a salesperson by a large company that manufactured chemical products, he was required to sign a confidentiality agreement that contained the following clause:
I agree that if my employment is terminated for any reasons by me or by the Company, I will not, for a period of one year following the termination, directly or indirectly, for my own account or as an employee or agent of any business entity, engage in any business or activity in competition with the Company by providing services or products to, or soliciting business from, any business entity that was a customer of the Company during the period in which I was an employee of
the Company or take any action that will cause the termination of the business relationship between the Company and any customer or solicit for employment any person employed by the Company.
Hasim’s sales territories were mostly in North America, but he had access to information related to clients’ international operations as well as access to his own employer’s sales, marketing, and business opportunities. After 17 years of employment, Hasim was dismissed, allegedly for cause. He applied to the court for a declaration that the provision he signed when he was hired was unenforceable.