Starting a business is indeed difficult. You have a good product and you have the secret. At the same time, you want some employees to help you so you can manage your business and scale it up. However, sometimes we cannot expect employees to be loyal. They can quit and use the information and strategy we have in the company to start their own business or to oppose you when they are working with another company. This is why you need the employee non compete agreement.
Non Compete Agreement for Employees Definition
The employee non competes agreement is a document that ensures the employee to use and share the information and strategy in the company to another party while working in your management or after quitting from your company. By doing this, you can secure your product and service because you make the person who works with you to keep the secret. Therefore, you can take legal action when you find them breaching the agreement.
What Are The Purpose Of This Employee Non Compete Agreement?
The agreement works like the confidentiality agreement and this binds legally. It will ensure everyone who has access to your business to keep their mouth shut and keep the secret by themselves even thou you are no longer connected with the employees. Therefore, it is secure and saves you from any kind of possibility in the future. For example, if the employees quit your business due to some discord and they want to use your information to oppose you.
When Do You Need The Employee Non Compete Agreement?
If you are running a business and planning to hire someone or doing a partnership with another party, then this agreement is a must. At this point, you should know the type of person you are dealing with. For now, they can be your assets, but in the future, they will be your competitors without being realized. Then, use this whenever you give access to another party to work with you.
How Should You Create The Employee Non Compete Agreement?
Some people prefer creating the non-compete agreement from scratch. Keep in mind to hire a lawyer so they can guide you about what kind of contract you should make including the efficiency and restrictions of the agreement. There are some rules that you must include so this can protect your business including your intellectual property from the devil man.
Our employee non competes agreement template gives you the quickest way of drafting this contract. There are important sections we include so you will not miss any important details. However, remember to always check the content to the lawyer.
Other tips you need to follow are always left to a person with high positions in your company because they have the secret access and eligibility to break your business. But for certain reasons, this agreement is also a must for any employees that can access your sensitive data. The last, always have this agreement notarized to bind each party legally so you have the law power when they breach the agreement. You can take legal action and you will likely win the case.
Sample Employee Non Compete Agreement Template