When an employer hires an employee, he considers many aspects that may be risky in the future. So for making a safe side, they sign agreements to reduce the future risk in their relationship. Employee Non-Compete Agreement is a legal document between employee and employer. This agreement bounds the employee not to start a business or become a part of any competitor’s business where he/she can use the confidential information of the employer and make a harm to his/her business. This agreement is done under the law and every country has a specific clause to deal with such agreements and provide security to the traders.
Because it is a legal document, so it is recommended, to consult a law associate to make it more valid and to avoid any misunderstanding between both the concerning parties. Like other legal documents it also has some requirements that must be fulfilled.
Following are the legal requirements to enhance the validity of Employee Non-Compete Agreement:
- Agreement should be supported by the consideration at the time of signing
- The agreement should guard a lawful business concern of the employer
- Agreement should be practical in capacity, geography and time
While writing and signing Employee Non-Compete Agreement legal consultancy must be achieved. If this agreement is signed separately, after hiring the employee, then it should contain the benefits and additional facilities that are given to the employee in exchange. Employee Non-Compete Agreement clause may be added to the main and large employee agreement as a paragraph at the time of recruitment. An employee Non-Compete Agreement may not be considered valid if it enforces a high degree of restriction that are impractical or may be harmful to the employee. In many areas of the world, Employee Non-Compete Agreement is prohibited. Employee Non-Compete Agreement provides a good deal of security to the confidential data and information of the company.
Create your own Employee Non-Compete Agreement by using the following template,