Free Employee Non-Compete Agreement Templates

Download these Free Employee Non-Compete Agreement Templates to help you write your Non-Compete agreement.

A non-compete agreement signed by the employees is a legal document or contract that bounds the employees and partners of a business or company not to start a similar business if they leave the company for any reason.

Brief Description of Employee Non-Compete Agreement:

Companies and organizations must face the competition in the market to acquire more clients for them. Companies create specific guidelines and new policies to increase sales. Hence earn profit in the company and stay ahead of the rival companies. When a company hires employees for important job positions in management or administration. The owners of the company and the higher management have to share their secrets about the company. Since they are manufacturing the products with employees that are related to such departments in the company.

For any reason, when such employees leave the company, there is always a chance that they can share valuable company information. Naturally, they can also use the policies and secrets learned from their previous employment. If this happens, the company can face a serious problem in the market as the competition will increase with new companies coming into the business. To make sure that a former employee or partner doesn’t start the same business in the same market, companies ask the employees and partners to sign a non-compete agreement with the company by the time of joining or leaving. This way the company saves a lot of future trouble and makes sure that the employees that left the company with the high-value secrets don’t start the same business in the market.

Key Elements to add to Employee Non-Compete Agreement:

Name of the company
Name of the employee or other parties
Date when the agreement is affected
Expiration or validity of the agreement
Clauses of the agreement
Reasons for signing this non-compete agreement
Specific geographical area for the effectiveness of this agreement
Compensation for the non-competing party
Termination of the agreement
Signature of both parties and the witnesses

Importance and Uses of Employee Non-Compete Agreement:

We have already included the information about why companies use this agreement for their employees and partners and it is very clear from the above-given content that with this agreement, companies make sure that the secrets they shared with the former employees won’t be used against them in the market in form of a new company or joining with some existing company. Most of the time, when employees sign this agreement, they are bound not to engage with a similar business in any form outside the company anywhere in the world but many companies also allow the employees to conduct the same business anywhere else so that even when the secrets of the company are being used somewhere in the world, it won’t affect the production, sales, profit, and market value of the company.