Microsoft will no longer ban staff from Seeking Roles at Competitors

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Microsoft will no longer ban staff from Seeking Roles at Competitors
10 Jun 2022
5 min read

News Synopsis

After the technology giant announced that it would no longer enforce non-compete clauses (NCCs) against the majority of its employees, Microsoft employees will be free to seek jobs at Google and Amazon.

The change is one of four announced in a blog post on Wednesday, including plans to phase out nondisclosure agreements, conduct a civil rights audit of its existing work policies, and commit to including salary ranges on all internal and external job descriptions.

Firms use NCCs to prevent employees from leaving for companies that are considered direct competitors. While there is more understanding when they are included in the contracts of the C-suite and senior management, their use against lower-level employees has been criticised as being too restrictive and subjecting people to unfair conditions.

Microsoft has enforced them in some employee contracts, but the company announced today that it is removing clauses from employee agreements and will not enforce existing clauses in the United States.

"We have heard concerns that the non-competition clauses in some U.S. employee agreements, even when rarely and reasonably enforced, feel at odds with our talent principles," said the blog post, attributed to Amy Pannoni, Microsoft's deputy general counsel, and Amy Coleman, Microsoft's corporate vice president for HR.