Non Compete Agreement Definition

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What is non compete agreement definition?

A non compete agreement, also known as a non competition agreement or a restrictive covenant, is a legal contract between an employer and an employee that restricts the employee from working for a competitor or starting a competing business for a certain period of time and within a certain geographic area after the termination of employment. The purpose of a non compete agreement is to protect the employer's trade secrets, confidential information, and customer relationships.

What are the types of non compete agreement definition?

There are primarily two types of non compete agreements:

General Non-Compete Agreement: This type of agreement restricts the employee from working for any competitor or starting a competing business in any industry or geographic area.
Industry-Specific Non-Compete Agreement: This type of agreement restricts the employee from working for a competitor or starting a competing business only in a specific industry or within a specific geographic area.

How to complete non compete agreement definition?

To complete a non compete agreement definition, follow these steps:

01
Identify the parties involved: Clearly state the names and roles of the employer and employee in the agreement.
02
Define the prohibited activities: Specify the actions or activities that the employee is restricted from engaging in during the non compete period.
03
Specify the duration and geographic scope: Clearly define the length of time and the geographical area within which the non compete agreement is enforceable.
04
Include consideration: Ensure that there is valuable consideration or benefit provided to the employee in exchange for agreeing to the non compete agreement.
05
Seek legal advice: It's highly recommended to consult with a lawyer or legal professional to ensure the non compete agreement complies with applicable laws and regulations.
06
Review and sign the agreement: Both the employer and employee should carefully review the agreement and sign it to indicate their consent and understanding of the terms.

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