When you sign an employment contract, there`s a good chance that you`ll come across a non-compete clause. This clause is designed to protect the interests of the employer by preventing a former employee from working for a direct competitor for a certain period of time. However, not all non-compete clauses are created equal, and it`s important to understand what you`re agreeing to before you sign on the dotted line.
Here`s a sample non-compete clause in an employment contract:
Non-Compete Clause
During your employment with XYZ Company, and for a period of twelve (12) months following the termination of your employment with XYZ Company for any reason, you agree not to:
– Engage in any business activity that is in direct competition with XYZ Company in any of the following areas: [list specific areas].
– Solicit or accept business from any of XYZ Company`s clients, or otherwise attempt to divert business away from XYZ Company.
– Solicit or hire any of XYZ Company`s employees for a period of twelve (12) months following the termination of your employment with XYZ Company.
This clause is fairly standard and provides a reasonable amount of protection for the employer. However, it`s important to note that non-compete clauses can vary widely in their scope and duration. Some employers may attempt to include overly restrictive language that could limit your ability to work in your industry for several years following your departure. Others may attempt to include non-compete clauses for positions that don`t warrant such protections.
If you`re unsure about the non-compete clause in your employment contract, it`s always a good idea to seek legal advice before signing. An experienced attorney can help you review the language of the clause and negotiate any necessary changes to protect your interests.
Ultimately, non-compete clauses can be an important tool for employers to protect their business interests. However, it`s important to approach them with a critical eye and ensure that they are reasonable and fair to both parties. By understanding the implications of a non-compete clause and seeking legal advice when necessary, you can protect your career and ensure that you`re not signing away your rights unknowingly.