Non-compete agreements
Record what an employee agrees not to do after leaving, in the narrowest terms the parties intend.
Limit competing work after someone leaves.
- Business / Legal document
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Key features
Why it exists and what is received
What the employer says it is protecting, what the role gives access to, and what the employee receives for agreeing.
The restriction, written narrowly
A blank period and a description of what the employee agrees not to do, with competing business described by activity, and the area it applies to.
What the employee remains free to do
A list including non-competing roles, unrelated parts of a competitor, small public shareholdings and using general skill and experience.
Release, termination and pay
Asking in writing for a release, what applies if the employer ends the employment, and whether the employer pays during the restricted period.
Scope, new employer and review
The parties' intention that it go no further than needed, telling a new employer about it, a warning letter before action, and a review if the role changes.
About this document
A non-competition agreement records what, if anything, an employee agrees not to do after their employment ends. It states why the restriction is said to be needed, what the employee receives for it, the period, what counts as a competing business, where it applies, what the employee remains free to do and a process for asking for a release.
This blank form leaves the period, area and activities for the parties to write as narrowly as they intend. Whether a non-compete is enforceable, and for whom, how long and how wide, varies a great deal by state and in some places such agreements are restricted or prohibited, and the law keeps changing. The form says the restriction's scope is for a court to assess. Take legal advice before asking anyone to sign one or relying on one.
Is this document right for you?
Useful when
- You are considering a post-employment restriction and want to see what it would say
- You have been asked to sign one and want to see the terms set out
- You want it limited to what is actually needed
Commonly used by
- Employers protecting key relationships
- Senior employees negotiating terms
- HR and legal teams drafting a first version
Not sure? about your situation first.
Alternatives
These are separate documents, for different jobs.
- Non-solicitation agreementsLimit poaching clients or staff after someone leaves.View document
- Employee non-disclosure agreementsKeep what employees learn at work confidential.View document
- Employment agreementsSet out pay, role and terms for an employee.View document
- Employment contract reviewHave a lawyer check an employment contract.View document
When to use this
- An employer drafts a limited restriction for a sales director
- An employee asks for a release for a particular new role
- A restriction is tied to a payment during the restricted period
What happens next
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More in Employment & HR
- Employment agreementsSet out pay, role and terms for an employee.View document
- Offer lettersMake a job offer in writing, with its key terms.View document
- Employee handbooksThe policies and expectations for your staff, in one place.View document
- Workplace policiesSet out how your workplace runs on a specific issue.View document
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Questions
About the non-compete agreements
That depends heavily on the state, the worker, the pay, the scope and the circumstances, and in some places it is restricted or banned. This form does not decide it, and says a court will assess the scope.
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