How to Write a Standard Non Compete Agreement
Standard non compete agreement can be defined as an agreement made between an employer & an employee where the employee agrees not to compete with the employer during & after employment. This agreement should be fair & equitable for both parties. Now, let’s see the further discussion!
Tips to Make a Standard Non-Compete Agreement
If you want to create a standard non-compete agreement template, you have to make sure to include the following details of information. First of all, you will have to provide a data. It is the effective date where this non-compete agreement begins.
Besides that, you will also need to provide the reason for making this agreement. In this section, explain the convincing reason with simple & easy languages so that it will be understandable. Make sure that you keep it short but clear with short sentences in providing the reasons.
Then, it also requires you to state the specific date during the employee is going to be barred from working in the competitive sense. Not only that but it also requires you to mention the location that is covered by this non-compete standard agreement. Just state these details as specific as possible.
It is also important to provide the details of how the non –competing party is going to be compensated after he or she agrees to the terms mentioned in this article. The compensation can be various. It can be in form of salary, bonus, incentive, or any other form of compensation.
In writing a standard non-compete contract template, there are also some terms to be included. First, you have to include non-solicitation terms. It prevents the employees from soliciting the client & customer base on the competitor. Considering the importance, you have to include it in detailed.
Besides, you will also need to include confidentiality & non-disclosure terms. It protects the trade secret the employee learns during the employment. It will be specific to the type of information which is confidential & cannot be disclosed to a client or a competitor. That is why you have to include it, too.
Next, you cannot forget to include work-for-hire terms in this agreement, too. It ensures that you have the work an employee generates during the employment. It also ensures that the work the employee does is not their property but the company’s property. State these details clearly to avoid confusion.
One more, you are also required to include incentive compensation. Sometimes, it refers to golden handcuff that offers compensation in form of exchange for loyalty. Whatever you call it, this should be clear to be stated in the agreement. If needed, the exact amount of compensation is mentioned, too.
A standard non compete agreement must be signed off by the employee to make it valid. In the terms of contract, the consequence of breaking it should also be clear. For example, it causes stopping the employment or even going to court. Hopefully this can be a useful reference for anyone who needs it.
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