Employee Non Compete and Non Disclosure

This Employee Non Compete and Non Disclosure Agreement template prohibits an employee from competing with the employer once s/he has left the employer’s service

Employers have sound business reasons for preventing an employee from taking advantage of relationships, information or skills acquired as a result of his or her employment.

For example, an employer may provide an employee with its customer list for the purposes of providing sales or support to those customers. Most courts would enforce an agreement that prevents the employee from contacting those customers on behalf of a competing business.

Non compete agreements are common in many industries, either as part of the employment contract itself or implemented as a stand alone agreement. They often go together with provisions of confidentiality.

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Employee promises not to Compete

Non compete or restraint provisions are a promise by an employee not to compete with his or her employer:

for a specified time,
in a designated area or
in a particular way.

This contract restrains an employee from competing with the employer after s/he has left the employer’s service, whether by working for a competitor, or by setting up a competing business.

In addition the employee is bound to the non-disclosure of confidential information gained during the term of their employ.