Benefits Of Non Compete Agreement

December 4, 2020 in Uncategorized by

Workers may be allowed to sign a non-compete agreement in order to obtain employment with a particular employer. The agreement may contain a payment clause in exchange for its willingness not to compete for a given time. The terms of the non-competition clause could be negotiable. Any area of the agreement, including length, geographic area and payment clause, could be negotiated to make the agreement more reasonable. Employees can also negotiate that the agreement is inconclusive if they are laid off from their jobs. A non-competition agreement must be limited to the scope and duration of the agreement. In most cases, a period of six months – or less – is considered appropriate, and more than two years are inappropriate. The period between six months and two years is considered a grey area and a battleground for litigation. You need a competent lawyer to design an agreement that benefits your unique business, leverages its unique strengths and helps meet its unique challenges. If you would like to use this tool, contact us and we will do our best to protect you from risks with a non-compete agreement. The agreement should also contain a language explaining the duration of the non-competition agreement.

It could be a year or more. For sensitive positions, the period could be longer. The agreement should cover the geographical area covered and whether compensation is provided for the non-competition agreement. When compensation is granted, there may be a language in which the worker must reimburse the employer in the event of a breach of the non-competition agreement. Finally, the non-competition agreement should contain a language explaining whether it will be applied in the event of involuntary dismissal of the workforce. The pros and cons of non-compete agreements for employers If the risks of non-competition are too high, there is another way. Privacy agreements provide a level of security for your proprietary information and products without being as restrictive. You get the level of security you need and your employees will have enough freedom to change positions if they need it.