When a company employees a worker, the employer will have to safeguard, his business secrets from leaking out to his competitor or third person through the employee. Again, the employee after getting the insight of the business, while working may start working with another rival in the same area, which is again detrimental to business, where the employee was working previously. These reasons make it necessary that the employer as a protection to his trade secrets compels the employee to sign Non-Compete & Non-Solicitation Agreements as a safeguard to his business.
Non-Compete Agreements
A Non Compete Agreement is signed by the employee, whereby the employee agrees not to get into certain employment within specific geographical area or with any rival company, as stipulated in the agreement, for a certain period of time after he/she leaves the job, completes the working period, dismissed or terminated .
Non-Solicitation Agreements
Non-Solicitation Agreements is signed by the employee, whereby he/she is forbidden to get in touch with the remaining employees and customers after his job termination.
These restrictive clauses in the agreements binds the employee on both occasions, to follow the conditions as mentioned in the agreement and employer on his part safe guards his business interests. These written Agreements can be termed as Legal documents, binding the employee with the Agreement Conditions.
The companies often follows such practice, where not only the upper level employees are compelled to sign the agreement but also goad business owners and low level workers, to sign such agreements. Mostly in technology sectors, such contracts are most prevalent.
It can be easily said that though Non-Compete & Non-Solicitation Agreements are for the protection of the business interests, the workers are often forced to sign such agreements to get the good employment opportunity. They have no other alternative except to sign to get good and satisfying job. These agreements may create numerous difficulties, once the employee leaves the job.
The following Non-Compete & Non-Solicitation Agreements Templates shows the nature of the agreements that the employer asks the employee to sign for protection of his business interest.
Non-Compete Agreements Template
EMPLOYEE NON-COMPETE AGREEMENT
IN CONSIDERATION of employment by _______________________ (hereinafter Referred to as Company), the signature below of ____________________ ( hereinafter referred to as I) demonstrates agreement to not compete with the business of the Company or its designated successors or assigns. This agreement will hold valid upon the termination of employment with said Company, notwithstanding the cause of termination, within an area of _________ miles from _________________. In addition, I shall not directly or indirectly own, be employed by or work on behalf of any firm engaged in the business of _____________________ or any business substantially similar to and competitive with the business of said Company. Commencing with the date of employment termination, this non-compete agreement shall remain in full force and effect for __________ years. Signed and sealed this on _____ day of ______________ (month), ______ (year). _________________________________ Employee
Non-Solicitation Agreement Template
Non-Solicitation Agreement
Name: ____________________________
Address:__________________________
Phone: ____________________________
I understand that I shall keep confidential and not utilize for any purpose not authorized by Capital Healthcare Solutions any information obtained either directly or indirectly as a result of, or in connection with, my contact or affiliation with Capital Healthcare Solutions or it’s existing or potential clients or consultants. This information includes but is not limited to client and consultant names, contacts, locations, employment opportunities, and patient information. I understand that I shall not, for a period of one year after the last contact, directly or indirectly solicit, or perform services independent from employment with Capital Healthcare Solutions for, any existing or potential client of Capital Healthcare Solutions (or affiliate of such client) with which I had contact because of Capital Healthcare Solutions I also agree to immediately inform Capital Healthcare Solutions of any contact with any existing or potential clients, and to reimburse any legal fees or costs that Capital Healthcare Solutions incurs in enforcing this agreement. These promises are made partly as consideration for Capital Healthcare Solutions assistance to me in finding employment.
Signature _________________
Date: ___________________
Printed Name: ____________