[everforward]

Apologies, I never thought you were disingenuous, it's just a busy time of year :)

In that circumstance, if both parties are still happy with the terms they would presumably sign a new contract minus the unenforceable terms.

If the company opts not to create a new contract, I would say it counts as firing the person without cause.

It is an interesting question though, especially as it pertains to future incentives. Something like the person having earned a bonus that hasn't been paid out yet, the contract is found invalid so the bonus part is scratched out.

Perhaps the individual deserves a choice in that case, whether to proceed without a contract or under the terms minus the unenforceable parts, or maybe something more punitive to the company like the individual keeping any rights they got and the company losing theirs.

I still think it's a workable idea, but you do raise an interesting point that's probably worth adjusting my idea around.