What This Employee Non-Compete Agreement Template Covers

This employee non-compete agreement template is designed to protect your business interests by restricting employees from engaging in competitive activities after leaving your company. It includes essential clauses such as the Non-Compete Clause, which outlines the restrictions on the employee's ability to work for competitors, and the Duration of Non-Compete, specifying how long these restrictions will last. Additionally, the Geographic Scope defines the areas where the non-compete obligations apply, ensuring your business remains safeguarded against potential competition.

When to Use a Non-Compete Contract

Employers should consider using this non-compete contract when hiring key employees who have access to sensitive information or trade secrets. For example, if you are onboarding a sales manager who will interact with confidential client data, a non-compete agreement can prevent them from taking that knowledge to a competing firm. Similarly, businesses in highly competitive industries may require a restrictive covenant agreement to ensure that former employees do not leverage their insider knowledge to benefit competitors.

What's Included in This Employment Non-Disclosure Agreement

• Parties: Clearly defines the employer and employee involved in the agreement, ensuring both parties understand their roles.
• Non-Compete Clause: Details the specific activities that the employee is prohibited from engaging in after employment ends.
• Duration of Non-Compete: Specifies the time frame during which the non-compete obligations are in effect, typically ranging from six months to two years.
• Geographic Scope: Outlines the geographical areas where the non-compete applies, which can be local, regional, or national.
• Consideration: Addresses what the employee receives in return for agreeing to the non-compete, which is essential for enforceability.
• Enforcement: Discusses the legal remedies available to the employer if the employee breaches the agreement.

Key Provisions of This Restrictive Covenant Agreement

• Employee Confidentiality Agreement: Protects sensitive information and trade secrets from being disclosed to competitors.
• Business Protection Agreement: Ensures that the business's competitive advantage is maintained by limiting former employees' ability to use proprietary knowledge.
• How to Enforce a Non-Compete Clause in Employment: Provides guidance on the steps an employer can take to enforce the agreement in case of a breach.

Disclaimer: This template is for informational purposes only and does not constitute legal advice.