Is It Permissible for An Employer to Make Me Sign a Non-Compete?

Question:

I am looking for work, and in my field they make us sign a contract preventing me from working as competition for the employer even after I stop working for him. This seems unfair. What profession should I work in then? This is my field. We are not dealing with a company that has special secrets or information that is prohibited to distribute. This is a requirement to be employed, and on the other hand – it makes it difficult for me to go to another place. Am I obligated to fulfil this immoral contract? What should I do?

Answer

Hello,

Firstly, we wish you success in finding work, and employment with fair and competitive conditions.

Due to the fact that we haven’t heard the position of the employer and the reasons he believes it is permissible to place this limitation on you – we will answer the question from the assumption that the reality is exactly as described.

Employer limitations for their employees in a competitive market or information transfer is a topic operating on two dimensions. One is the legal dimension. According to halacha, it is permissible for a community and country to determine employment laws such as these, and this is part of the “community edicts” well recognized according to halacha. In order to know the legal status in the State of Israel it is best to consult with a professional in this domain and clarify with them the statutory principles that exist in this country.

The second aspect is the ethical one. It seems that from a moral perspective one must balance between appropriate conduct towards employees and the obligation recognized by halacha not to subjugate him to his workplace and not prevent him from pursuing new paths (the Gemara and poskim learn this from the restrictions that exist regarding employing a “Jewish slave”, providing inspiration for all of employment law), and the rights of the employer to protect himself, his professional knowledge, etc.

However, if the reality is as you have written, and we are dealing with a demand that is tyrannical and meant to protect him alone – it seems that from a moral perspective he is not permitted to place such a restricition, and there is no obligation to follow it. We have written about this a number of times as well, in light of the halachic principle “with the pure you should be purified”.

All the best,

Rabbi Yuval Cherlow

Head of the Tzohar Ethics Center

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