Non-Complete Clause
A non-competitive agreement is a commitment in a contract that employees do not compete with their employer either before or after the employment. This provision helps the employer to guard his trade secrets, clientele and market schemes against abuse. Though it provides certainty in business terms, they are not enforced universally, as overdramatic conditions can be considered unjust. Non-compete clauses are used to ensure that employees are given freedom and at the same time protect the competitiveness of the organisation and intellectual property.
Examples of Non-Complete Clause
1) To access confidential client data, the company had to make all the top-level executives sign a non-compete clause.
2) Courts frequently consider a non-compete clause reasonable in terms of time, geography and scope.
3) Startups do not always find it easy to impose a non-compete clause because of jurisdiction and employee rights.
Synonyms
- Non-Compete Agreement
- Restrictive Covenant
- Non-Competition Clause
- No-Compete Covenant
- Employment Restriction Agreement
