In this age of hard competition, almost all businesses and companies are doing their best to maintain their goodwill and visibility in the market. They use a lot of ways to do so and one of them is signing an employee non-compete agreement when hiring new staff employees to make bigger their manpower. An employee non-compete agreement is entered into between an employer and employee according to which one party (employee) agrees not to enter into or start a similar profession or business activity in competition against another party. Losing valuable employees is one of the most frustrating aspects of running a business establishment or company. If you are also facing this situation while running your own business, it is recommended for you ask your employees to sign an employee non-compete agreement. Most of companies and business organizations usually insist on non-compete agreements because of the possibility of an employee upon termination or resignation, working for a competitor party, or starting a similar new business. Companies and employers may require non-competition agreements for a variety of reasons just as the protection of trade secrets or goodwill etc.
Usually, such agreements limit the competition an employer will face from those employees or staff who have bottomless knowledge of how its business works and are therefore in a great position to take away customers, clients, and other valuable employees, etc. It is sure that a non-compete agreement can keep your company or business from losing employees, but it can also protect your company’s confidential information and trade secrets. For instance, if one of your employees has access to sensitive business data, information, or trade secrets, you will perceptibly want to put off this employee from disclosing this information to your competitors in the market and also don’t want to lose a such valuable employee.
When a valuable employee with access to confidential information of the company leaves either because of a resignation or has been fired by the management, he could take the valuable information of the company and can also use it to his personal advantage or to start a new similar business or company. For this situation, making an employee non-compete agreement is the best option to choose.
Here is a preview of a Free Sample Employee Non-Compete Agreement Template created using MS Word,
In general, the major purpose of the non-compete agreement is to state that the employee may not work for a competing firm for a mentioned period of time off till employment ends. Companies and employers take advantage of non-compete agreements because they keep a dear employee from sharing productive industry experience, confidential knowledge and information, trade secrets, client lists, and other information that is proprietary to the employer with competitors in the same market. Signing an employee non-compete agreement is also beneficial for employees because they receive something of value from the employer or company in return. You as a fresh person may face trouble to draft an employee non-compete agreement but you can make it easily using the below-provided employee non-compete agreement sample. It provides a proper format and enough amount of instructions to complete a personalized employee non-compete agreement in a short span of time.