Does this devotion clause mean I cannot work on personal commercial projects (or a registered business)? As an engineer, I would like to make sure that I can work on side projects, and have the right to commercialize it; that is publishing on the app store as a paid app, or hosting on the web with a subscription fee. Of course, this wouldn't be in competition with the COMPANY. With that in mind, I have an offer of employment from a company I really like, and this was one of the clauses that stood out to me. Based on this, do I need to ask for explicit permission to work on such projects? The Employee shall devote his/her whole working time and attention to the employment during the time thereof, and shall not, without the consent in writing of COMPANY_NAME, engage in, or become a director, manager, employee, or agent, of any other company, firm, or individual which competes with or conducts similar business to COMPANY_NAME, during the term of the employment, nor shall the Employee engage in any other business or occupation whatsoever.
Yes, your clause specifically limits you to only working for COMPANY, even in your off time. Canada does not have a law protecting your right to work secondary jobs (moonlighting) in your off-duty hours. This means that any contract clause specifically limiting you to work with the employer only is valid, and breaking it is cause for justified dismissal. Based on this, do I need to ask for explicit permission to work on such projects? Yes, you will need to disclose any potential &quot;business or occupation whatsoever&quot;. You could play contract games by saying &quot;it's only a hobby&quot; or &quot;it doesn't make any money&quot;, but you will be opening yourself up to issues. The best thing to do is to disclose your project to your employer and get in writing their permission to work on it with specific terms that you will not be using company time or resources in any way. See: Patterson V. Bank of Nova Scotia
No You can outsource if you don't disclose Confidential Information (as defined in the agreement), or if you have the principal's permission to disclose it to the third-party contractor. The clause only applies to confidential information - a subset of all information. I know that independent contractors should have the freedom to complete the work in whatever way they want Not at all. George Clooney, the actor, is an independent contractor - he can't outsource. Of course, this is an example of a personal services contract but, more generally, while the starting position in contracting is that either party may delegate their obligations (although they remain responsible for them) the parties are free to structure their contract however they like. If they want to prohibit outsourcing, they can. If they want to specify that certain personnel must be used (or not used), they can.
If the company makes a contract, and as a result of that contract it owes more money than it has, then the company goes bankrupt and the owners and directors can walk away from it. This covers the owners/directors in cases of ordinary business contracts. However if an employee (including an owner or director) does something sufficiently harmful then under the law of torts they can be personally liable as well as the company. Examples are negligence and fraud; if you build someone's new roof while acting as an employee and the roof leaks then its likely to be the company on the hook for damages. However if you misrepresented your qualifications or acted negligently then you might well be personally liable. This is all very general. Details are going to be specific to your jurisdiction. So the answer is that having a company is certainly better than making every contract in your own name, but its not complete cover. You can probably get insurance if this is a concern, but its likely to be expensive.
This depends on the agreement between the person commissioning the work and the ghostwriter; but it is entirely possible that the ghostwriter would have no claim of copyright if it is a &quot;work for hire&quot;. This circular (PDF) from the US Copyright Office lays out the possibilities. Under the US Copyright Act, a work may be considered a &quot;work for hire&quot; if it is: a work prepared by an employee within the scope of his or her employment; or a work specially ordered or commissioned ... if the parties expressly agree in a written instrument signed by them that the work shall be considered a work made for hire. If (in the second case) the commissioner and the ghostwriter sign a written contract saying that the work is a &quot;work for hire&quot; (see p. 3 of the PDF), then the commissioner gets the copyright, not the ghostwriter: If a work is a work made for hire, the employer or the party that specially ordered or commissioned that work is the author of that work. If a work is made for hire, the employer or the party that specially ordered or commissioned that work is the initial owner of the copyright in the work unless the employer or the commissioning party has signed a written agreement to the contrary with the work’s creator. However, it is also possible for ghostwriters to negotiate some rights to their own work in the contract process. This FAQ describes one possibility: Question: How can I bargain for a better ghostwriter agreement? Answer: If you are commissioned to create a work, and you don’t feel comfortable signing a ghostwriter for hire contract (perhaps you want to use the characters you create for another project, etc), then you can negotiate to grant less extensive rights and sign a “freelance writer for hire” agreement instead. Limit the amount of time the Client owns exclusive rights, whereby you can initiate a termination of transfer. If this doesn’t fly, bargain for more money. You may also propose that if the Client decides to abandon the project, then the copyright can revert to you.
You cannot contract outside the law Any "contract" that purports to break the law isn't a contract - it's an unenforceable agreement. For example, across all jurisdictions, a contract that is unconscionable is void. So is a contract that requires one of the parties to break the law - a "contract" for murder for example. In addition, you cannot call an employment relationship a "business" relationship - if the relationship meets the requirements of an employer-employee relationship then that's what it is and woe betide you if you haven't complied with all relevant entitlement, tax, insurance and safety laws. In addition, all of the relationships you listed are contracts.
I can answer for the U.S., if that's helpful. The general rule, in the United States, is that covenants not to compete are enforceable as long as they are reasonable. What constitutes "reasonable" varies from state to state. Factors considered generally include: What kind of actual harm will come to the business if you go to a competitor? In other words, is this rote language they include in every contract, or did they put it in yours because you know all the secret formulas and have the customer list memorized? Is it reasonable in time, location, and scope? Something preventing you from taking any job anywhere in the United States for ten years won't be enforceable; something preventing you from taking a job with the exact same title in the same industry in the same town for the next six months might be. The general rule at common law was that covenants not to compete were unenforceable restraints of trade; the fact that they're enforceable at all is later law created by each jurisdiction, and that means it's going to vary based on your specific jurisdiction. If you want to know whether it's okay to take a specific job based on a specific non-compete you signed, you will need to talk to a legal professional licensed in your jurisdiction--and even she may not be able to tell you for sure.
However, this uses the text "rights in an invention"; does that cover copyright? Yes. (Is this the correct law?) It certainly seems to be. Does "Relate … to the employer's business" cover the entirety of software engineering, or just the particular software engineering my employer does? Imagine that you work for a company that writes trading software. In your spare time, you develop a photo editing tool. Do you think a court would find that your project "related to the employer's business"? I do not. Or does my employer own copyright on everything down to the love letters I write? Google does not own everything their employees create; they only claim to. If someone challenged them on it, a court would decide, and probably not in their favor.
You can't You agreed: by submitting Materials in any form to the Company, in addition to other provisions of the Terms, you automatically grant Company a royalty-free, world-wide, irrevocable, non-exclusive, and assignable right and license to use, copy, reproduce, modify, adapt, publish, edit, translate, create derivative works from, transmit, distribute, publicly display and publicly perform such Materials for the purpose of displaying and promoting the Materials on any website operated by, and in any related marketing materials produced by, the Company and its affiliates. They can keep and use your data forever and give it to whoever they want. The clause you quote doesn't alter that. All it says is that once a year, if you ask, they will tell you what information they shared and with whom. If they feel like it they will tell you how to get the information deleted.