It should not be necessary for every employee in your company to be forced to enter into a non-competition clause. It is recommended to be selective in deciding on employee positions, as no employee has access to information that can harm your business in some way. After defining the positions to be signed, indicate this in your company policy so that the rule is applied uniformly throughout the organization. The model non-compete clause below describes an agreement between “ABC, Inc.” and an employee, “Ferne Xiu”. If Ferne Xiu terminates her employment relationship, she agrees not to manage related matters such as ABC, Inc., not to induce other employees to terminate their employment relationship, and not to solicit clients of ABC, Inc. Confidentiality Agreement – A binding agreement that implements total discretion and prevents the disclosure of limited information to third parties. The language you use in your non-competition clause should be easy to understand. The employee should be able to clearly understand the conditions while keeping in mind their academic background. If it is simple and short, it will reduce the likelihood that it will be challenged in the future.

To make sure the employee understands the agreement, you can create a cover letter explaining the terms and conditions of sale and what the employee agrees to by signing. Since these agreements have become more universal for employees who are not in management or above, many jurisdictions are very attentive to the wording and legality of agreements. In these cases, the courts are very prone to staff, as it is clear that an unfair agreement can seriously harm the employee. You must first assess the legitimate interests of your company. On this basis, do you answer the following question: should you include in the agreement or a combination of these four agreements a secret, a non-publicity of the staff, a non-solicitation of customers or a non-competition clause? This is important because the court asks you to present a legitimate reason for your employees to sign a non-competition clause and it may refuse to allow you to content with provisions that do not apply to your business. These are some of the areas that should be addressed in your agreement. It is important to be as specific as possible to the design of these agreements. This may include updating as employees` knowledge and positions progress. This non-compete clause template is available for use on UpCounsel. Download this free non-compete agreement below and let it still adapt to your individual business legal requirements today. This non-competition clause (“agreement”) is between [company name] (“employer”) and [employee name] (“employee”). Courts take into account a large number of factors when assessing the adequacy of non-compete agreements.

Some of these factors are: However, if your employee has signed a non-compete clause, they cannot disclose your business secrets or important information to your competitors or start a similar business. This agreement contains the entire agreement and understanding between the employer and the employee with respect to the anti-competition agreement referred to therein, and no written or oral warranty, promise, agreement or understanding not included therein shall have any force or effect. . . .