Non Competition

Non-Compete Agreement

A non-compete or non-competition agreement is a contract where an employee agrees not to compete with the employer. The agreement may be for a limited duration and geographic area, and may even identify specific companies that the employee pledges not to join upon the termination of his or her employment.

A non-compete contract (NCC) or covenant not to compete (CNC), is a term used in contract law under which one party, usually an employee, agrees not to enter into or start a similar profession or trade in competition against another party, usually the employer. When you share ideas and business practices with employees, partners, and contractors, a Non-Compete Agreement helps make sure the people you work with don’t wind up becoming or working for the competition.

Non-compete Agreement becomes necessary to protect:

  • An employee and employer are terminating relationship and the employer desires that the employee will not compete against the employer in a new setting.
  • A company and a consultant or independent contractor are terminating their relationship and the company desires that the consultant will not compete against the company in a new setting.
  • Two business parties are terminating a business relationship.
  • Information required for creating a Non-Compete Agreement:

Following are the key provisions in a Non-Compete Agreement and these must be incorporated in the agreement:

  • The agreement effective date
  • Names and addresses of parties to the agreement
  • Reason for Non-compete Agreement
  • Time period for Non-compete Agreement
  • Geographic area for Noncompete Agreement
  • How the Noncompeting Party will be compensated
  • Individuals who will be signing the agreement

The following are additional or optional terms that you may want to include in your agreement.

  • The Noncompeting Party will be prohibited from soliciting Protected Party’s customers or clients. Include the time-period during which this clause will be enforceable.
  • The Noncompeting Party will be prohibited from hiring Protected Party’s employees. Include the time-period during which this clause will be enforceable.
  • The Noncompeting Party will be prohibited from disclosing the Protected Party’s confidential information. You may choose a time-period during which this clause will be enforceable and/or you may require that records and or property must be returned by the Noncompeting Party to the Protected Party within a specified period of time after being requested to return the items. For example, three weeks.
  • Generally, a Noncompete Agreement must be reasonable in its terms and include consideration (money exchanged for the promise not to compete) in order to be enforceable.
  • Signing the agreement: In order to make the Noncompete Agreement legally binding, both parties to the agreement will need to sign it.

We deal with the following Agreements

  • Consulting Agreement
  • Employment Agreement
  • Executive Employment Agreement
  • Noncompete Agreement
  • Non-Disparagement Employment Agreement
  • Non-Disclosure Agreement (NDA)
  • Independent Contractor Agreement
  • Employment Contract
  • Employee Handbook

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