Non Compete Agreement Template
We have created Non Compete Agreement template with simplicity in mind. It is an easy to use and ready made Non Compete Agreement template that enables you to know exactly what the client’s responsibilities are and saves your time and money.
Free Non Compete Agreement Template Samples
To help you grow your Business we have made a quite simple yet reliable Non Compete Agreement template in Word and PDF versions so you can use it repeatedly.
- Type of work that is restricted.
- Terms of restriction.
- Jurisdiction.
- Duration of the agreement.
What is a Non Compete Agreement ?
Why should I have a non compete agreement?
Pros:
- Protects a company’s trade secrets: Noncompete agreements can prevent employees from taking sensitive information to a competitor.
- May reduce turnover: Companies with non compete agreements may be a good fit with workers who have a lesser desire to change jobs.
- May incentivize an employer to provide costly training: The chance is reduced of an employee taking the skills learned from costly training and taking them to another company
Cons:
- Can reduce a worker’s bargaining power: An estimated 37% of workers are asked to sign a noncompete agreement after beginning work, when they have little leverage and have closed the door to other opportunities.
- May cause a worker to leave a field entirely, taking their expertise with them: Noncompetes can have an adverse effect on the workforce by preventing top talent from using their skills and experience, essentially forcing them out of the field.
What Industries use Non-Compete Agreements?
Non-compete agreements are common in the media. A television station might have legitimate concerns that a popular meteorologist may siphon viewers away if they began working for a rival station in the same area. In most jurisdictions, this would be considered a reasonable cause to sign a non-compete agreement.
Non-competes are also common in the information technology (IT) sector, where employees are often charged with proprietary information that may be deemed valuable to a company. Other places where these agreements are found include the financial industry, the corporate world, and manufacturing.
Non-Compete vs. Non-Disclosure Agreements:
Non-compete agreements are distinct from non-disclosure agreements (NDAs), which generally don’t prevent an employee from working for a competitor. Instead, NDAs prevent the employee from revealing information the employer considers to be proprietary or confidential, such as client lists, underlying technology, or information about products in development.
Important Terms
What should be included in a standard non-compete agreement?
- Name of employer.
- Name of the employee.
- Type of work that is restricted.
- Terms of restriction.
- Jurisdiction.
- Duration of the agreement.
Does a non compete agreement need to be notarized?
How enforceable is a non compete agreement?
How long are non compete agreements good for?
The time frame for non-compete agreements must be for a reasonable duration and is usually determined by the state. Non compete agreements generally last two to three years.
Frequently Asked Questions
FAQ about our Non Compete Agreement Templates
we recognize that your contract layout conditions may need to be changed to be in line together with your client’s needs. That’s why we have made Contrat in Word format as well so that you’ll be able make adjustments as you like. If you want to make important changes to the template, we propose you to get help of a lawyer or conveyancer to make sure you still have protection.
If you break a non-compete agreement, you could, in theory, be sued. State law (and it differs state by state) sets the enforceability (or not) of non-compete agreements.
When you are offered a job, you may be asked to sign a non-compete agreement as part of your employment terms. If you want to negotiate it, you should reach out to an employment attorney for help. Talking to the company’s human resource manager about your concerns is another way to open the door to negotiating your agreement.
Maybe, but it may require going to court. It is wise to contact an attorney if you consider trying to get out of a non-compete agreement.
