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Non-compete and Non Solicitation Agreement for Employment


Looking for a simple and easy-to-understand one-way non-compete and non-solicitation agreement for employment? Our agreement is designed to benefit employees and includes unilateral obligations to prevent competition and solicitation.

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Document Description

A non-compete and non-solicitation agreement is a legal contract that imposes restrictions on employees after they leave a company. It is designed to prevent the employee from working for a competitor or soliciting customers, clients, directors, officers, employees, and consultants of their former employer. This particular template agreement is a one-way non-compete agreement that is entered into between an employer (the company) and an employee.

The agreement is short and simple, allowing for signing without negotiation. It is made up of ten clauses, which set out the obligations of the employee, exceptions to the agreement, and other key terms. The agreement includes a schedule, which defines the business and identifies confidential and proprietary information. It also sets out the restrictions that the employee must follow, including not competing with the company's business, not soliciting from the company, and keeping confidential any trade secrets, business secrets, customer data, or confidential and proprietary information obtained from the company.

The agreement also contains exceptions to the restrictions, including investments in quoted companies and acquisitions of companies not predominantly engaged in competing business. The employee acknowledges that the restrictions are fair, reasonable, and necessary to protect the company's business interests. The agreement is legally binding between the parties and will terminate a specified number of months after the termination of employment. It also includes provisions on enforceability, governing law and jurisdiction, and the entire agreement.

How to use this Document?

If you need to restrict your employee from competing with your company and soliciting your clients, this template non-compete agreement can help. Here are the steps to use this document:

1. The agreement is between the employee and the company and is effective from the current date.

2. Parties must be identified with their names, addresses, and their roles in the agreement.

3. The agreement starts with a whereas clause and mentions the consideration that the employee has received for signing the agreement.

4. Interpretation: The agreement provides a list of definitions of business, compete, solicit, and confidential and proprietary information.

5. Obligations of Non-Compete and Non-Solicitation: The employee agrees not to compete with the company's present business in the specified area, not to solicit any customers, clients, directors, officers, employees, and consultants from the company, and to keep confidential any trade secrets, business secrets, customer data, or confidential and proprietary information obtained from the company.

6. Exceptions: The agreement mentions the exceptions to the non-compete obligation in detail, including investments in quoted companies, shares in a company with less than a specified percentage of competing business, and acquisition of a company not predominantly engaged in a competing business.

7. Employee Acknowledgments: The employee acknowledges that the restrictions set forth in the agreement are fair, reasonable, and equitable and that they are necessary to protect the business interest of the company.

8. Term: The non-compete obligation lasts for a specified period after the termination of the employee's employment.

9. Enforceability: If any provision of the agreement is found to be invalid or unenforceable, the remaining provisions will remain in full effect.

10. No Rights under Contracts for Third Parties: This agreement cannot be enforced by any third party who is not a party to this agreement.

11. Governing Law and Jurisdiction: The agreement specifies the jurisdiction and the law applicable to the agreement.

12. Entire Agreement: This agreement is the entire agreement between the company and the employee, and it supersedes all previous negotiations, understandings, and agreements.

13. Binding: The agreement is legal and binding between the parties, and the parties each represent they have the authority and capacity to enter into this agreement.

14. Signatures: The agreement should be signed by the duly authorised representatives of the parties.

This non-compete agreement template is designed to restrict employees from competing with the company and soliciting its clients. The agreement is easy to understand, and it mentions exceptions to the non-compete obligation. The agreement is legally binding and provides for the governing law and jurisdiction. The agreement is between the employee and the company and does not provide for any third-party rights.

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