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Employee Non-Compete Agreement
Protect your business by restricting post-employment competition with this Employee Non-Compete Agreement Template.
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Employee Non-Compete Agreement Template
This Employee Non-Compete Agreement (“Agreement”) is entered into on [Date], by and between:
Employer:
Name: __________________________
Company: __________________________
Address: __________________________
Employee:
Name: __________________________
Address: __________________________
Together referred to as the “Parties.”
1. Purpose
The Employer desires to protect its confidential information, trade secrets, goodwill, and competitive advantage. The Employee agrees to the restrictions outlined in this Agreement as a condition of employment.
2. Non-Compete Obligations
The Employee agrees that during employment and for a period of [Duration, e.g., 12 months] after termination of employment, they will not, directly or indirectly:
Engage in, own, manage, operate, or be employed by any business that competes with the Employer’s business.
Solicit or service the Employer’s customers or clients for competitive purposes.
Recruit or hire the Employer’s employees for a competing business.
3. Geographic Scope
This non-compete restriction applies to the following geographic area:
[Specify city, state, region, or country]
4. Confidential Information
The Employee agrees to maintain strict confidentiality regarding all proprietary information, trade secrets, and sensitive data obtained during employment, both during and after employment.
5. Consideration
In exchange for the Employee’s obligations under this Agreement, the Employer provides the following consideration:
[Specify consideration, e.g., initial employment, bonus, promotion]
6. Exceptions
This Agreement shall not prevent the Employee from engaging in businesses that are unrelated to the Employer’s industry or from performing general professional services that do not compete with the Employer.
7. Remedies for Breach
In the event of a breach, the Employer may seek:
Injunctive relief to immediately stop prohibited activities.
Monetary damages for losses resulting from the breach.
Recovery of reasonable attorney’s fees and court costs.
8. Governing Law
This Agreement shall be governed by and interpreted under the laws of the State of [State/Country].
9. Severability
If any provision of this Agreement is found to be unenforceable, the remaining provisions shall remain in effect.
10. Entire Agreement
This document represents the entire agreement between the Parties and supersedes all prior negotiations or understandings related to the subject matter.
11. Signatures
Employer Signature: __________________________ Date: _________
Printed Name & Title: __________________________
Employee Signature: __________________________ Date: _________
Printed Name: __________________________
Details
Learn more about
Employee Non-Compete Agreement
EMPLOYEE NON-COMPETE AGREEMENT FAQ
What is an Employee Non-Compete Agreement?
An Employee Non-Compete Agreement is a contract between an employer and an employee in which the employee agrees not to enter into or start a similar business that competes with the employer during or after their employment.
Why is a Non-Compete Agreement important?
It protects confidential business information, trade secrets, and client relationships, ensuring that employees cannot use insider knowledge to harm the company or unfairly compete.
When should you use an Employee Non-Compete Agreement?
Use this agreement when hiring employees in roles with access to sensitive data, such as sales, product development, or leadership positions. It is particularly useful when employees could potentially move to competitors or start their own competing business.
What should a Non-Compete Agreement include?
Key elements include the duration of restrictions, geographic area, prohibited activities, confidentiality clauses, and legal remedies for breaches.
Are Non-Compete Agreements enforceable everywhere?
Enforceability varies by jurisdiction. Some states or countries have strict limitations or outright bans, so it is essential to tailor the agreement to comply with local laws.
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