Download these 19+ Free Employee Non-Compete Agreement Templates to help you write your own 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 the similar business if they leave the company for any reason.
Brief Description of Employee Non-Compete Agreement:
It is mandatory for companies and organizations to face the competition in the market in order to acquire more clients for them. Companies create specific guidelines and new policies to increase the sales. Hence earn profit in the company and staying ahead of the rival companies. When a company hires employees on important job positions in management or administration. It is very obvious that the owners of the company and the higher management have to share their secrets of the company. Since they are manufacturing of the products with the employees that are related to such departments in the company.
Due to any reason, when such employees leave the company, there is always chances that they can share valuable company information. Naturally, they can also use the policies and secrets learnt from the previous employment. If this happens, the company can face a serious problem in the market as the competition will increase with new companies coming in the business. In order 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 in Employee Non-Compete Agreement:
- Name of the company
- Name of the employee or other parties
- Date when the agreement is effected
- Expiration or validity of the agreement
- Clauses of the agreement
- Reasons for signing this non compete agreement
- Specific geographical area for 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 the similar business in any form outside the company anywhere in the world but there are many companies that 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.
Free Employee Non-Compete Agreement Templates
Download all these Free Employee Non-Compete Agreement Templates Templates that can easily help you to prepare your own Employee Non-Compete Agreement effectively.