I have an awful contract that I signed in haste because the money was good. Never, never again! My contract states that any IP I produce is the property of the company. Therefore I am allowed to work on open source projects but the company would then own it. Of course they can't own it - it's open source! - but this is in effect my violation of the open source licence (GPL, BSD, et al.) and I get it in the neck from lawyers on both sides.
I've never actually violated this contract to find out what would happen. However, we've just gone through a painful round of redundancies and the company has openly threatened to pursue ex-employees who violate their non-compete clauses. (Personally I don't know how somebody can compete with a position that's been made redundant.) Anyway, it's nice to know that the company is willing to spend money on lawyers to chase employees it couldn't afford to pay. This indicates to me that they are serious about these things, including the IP rights to my daughter's nursery web site I put together one weekend.
I have several ominous clauses in my contract. There's the IP ownership you mention, and mine includes any IP whatsoever, even if it's completely unrelated. Then there's the broad non-compete that stops me making a living in my field of expertise. I also have a 6-month notice period, which coupled with the 6-month non-compete means that if I am offered a job today I can't start it for 12 months (who's going to offer me a job on those terms?)
So let me get this straight...
- If I quit I can't start another job for 12 months.
- If I start a side project during those 12 months then they'll own it.
My non-legal advise to anyone signing a contract of employment is to negotiate such terms out of it completely or pin them down very specifically based on bonafide legal advice. For example on IP you must be able to work on your own outside of work hours. Or you must be able to work on any open source project. Or include a clause whereby you can seek agreement to work on specific open source projects on a case by case basis. Name every single company that you may not work for in a non-compete clause. Make sure that non-compete period is paid at full salary.
Don't just sign anything like I did.