A non-compete agreement is a legal document that restricts an individual from working in a field or for a competitor for a certain period after leaving a job. This type of agreement is commonly used to protect a company’s trade secrets, intellectual property, and other confidential information from being shared with competitors by former employees.
If you are an employer looking to create a non-compete agreement for your employees, it is essential to ensure that the agreement is legally binding and protects your company’s interests. Here is a non-compete agreement sample that can be used as a starting point for creating your own agreement:
[Company Name], hereafter referred to as “Employer,” and [Employee Name], hereafter referred to as “Employee,” agree as follows:
1. Scope of Restrictions
The Employee acknowledges that the Employer’s business interests are significant and proper protection requires that the Employee not engage in certain activities following the termination of employment with the Employer. The scope of restrictions under this agreement shall apply to all activities that are in direct or indirect competition with the Employer, including but not limited to:
(a) Directly or indirectly soliciting customers, clients, or accounts of the Employer or attempting to divert business from the Employer
(b) Engaging in any employment, business, or activity that is in direct or indirect competition with the Employer’s business
(c) Working for any business that is in direct or indirect competition with the Employer within [insert time period, e.g., six months] following termination of employment
2. Consideration
The Employee acknowledges that the Employer will provide valuable consideration in exchange for entering into this agreement, including but not limited to:
(a) Access to the Employer’s confidential information, trade secrets, and intellectual property
(b) Training and development opportunities
(c) Other valuable opportunities, benefits, and consideration that are provided by the Employer
3. Reasonable Restrictions
The Employee agrees that these restrictions are reasonable and necessary to protect the Employer’s business interests and competitive advantage. The Employee acknowledges that the Employer has a legitimate interest in protecting its confidential information, trade secrets, and intellectual property.
4. Enforceability
The Employee acknowledges that a breach of this agreement may cause irreparable harm and damage to the Employer. The Employee agrees that the Employer may seek an injunction and any other relief available to it in the event of a breach of this agreement.
5. Governing Law
This agreement shall be governed by and construed in accordance with the laws of [insert state or country].
6. Entire Agreement
This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, and agreements between the parties, whether written or oral.
In conclusion, a non-compete agreement is an important legal document that can help protect a company’s interests. It is essential to ensure that the agreement is legally binding, reasonable, and enforceable. This non-compete agreement sample can be used as a starting point for creating your own agreement, but it is recommended to consult with a legal professional to ensure that your agreement complies with the relevant laws and regulations in your jurisdiction.