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What is included in a sample non-compete agreement?

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Quick Answer

A sample non-compete agreement includes terms and conditions that limit an employee from working in a competing organization following resignation. The agreement must state the names of the parties involved in the contract as well as the period and region it covers.

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Full Answer

A non-compete agreement is usually enforceable for about six months to two years. A person should take into account the laws governing the agreement before drafting it. Most legal systems tend to protect employees from the agreements. California and Texas don't allow or support this type of agreement.

Employees should not give out or use among others a former employer's trade secrets, operational and strategic plans, knowledge, and experience. Otherwise, competitors may use the sensitive information to gain market or industry advantage. Employees receive a pay increase or promotion once they sign the agreement, but a mutual non-compete agreement is highly enforceable.

The agreement may also contain conditions that limit a former employee from contacting or recruiting the employer's workers. In addition to not contacting the former employer's clients, the employee cannot use previous sales leads to identify the clients. The sample agreement should be familiar to both workers and competitors. The employer can sue either his former employee or a rival business in cases where they go against the contract.

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