A noncompete clause, or non-compete agreement, is a special contract. This is a contract between the employee and employer. A noncompete prevents that employee from working with any direct or indirect competitors.
No two non-competes are the same. But they prohibit working for a competitor during or after one’s employment at the company. Even if the employee terminates their employment, the noncompete still applies for the contracted period.
Here is a noncompete clause sample of what it may include:
- A date that establishes when the agreement begins
- A justified reason for making the agreement
- A window during which the employee cannot work for competitors
- Some form of compensation if the employee obeys the terms (optional)
To be clear, not all noncompete agreements include remuneration. Even then, the remuneration may not be sufficient.