A non-compete agreement is an official contract signed between the business and employee at the time of offering an employment which agrees not to compete with the present employer during and after the employment tenure. This agreement denotes that the employee is restricted to work with any other company or competitors of the particular business. This kind of agreement is presented by a business with an intention to maintain confidentiality at its best. Moreover, the confidentiality regarding the trade secrets could also be maintained potentially by the help of this contract.
In a condition where employee turnover is extremely high these days and company’s loyalty is also diminishing, a well formulated non-compete agreement could help the business authority to maintain confidentiality policies and can address the risk of exposing the internal information. For constructing a well documented non-compete agreement, one has to follow certain factors as enlisted:
Apart from considering the above mentioned factors strictly while documenting a non-compete agreement, one must also ensure to negotiate the agreement in good faith.