Non Compete And Non Solicitation Agreement (For Employees)

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Definition

A Non-Compete and Non-Solicitation Agreement fulfills two purposes.

Purpose 1- It is an agreement which bars an employee from competing against his/her own employer.

Purpose 2- It is an agreement which bars an employee from personally soliciting his/her employer’s clients.


Benefits of executing a Non-Compete and Non-Solicitation Agreement

  • The agreement is a written record.
  • The agreement is a legally binding document and can be enforced in the court of law.


Limitations of this Agreement

  • One should not confuse this agreement with an employment contract. 
  • This agreement is only limited to the subjects of non-compete and non-solicitation exclusively.


Covenant Not to Compete

This covenant says that by executing this agreement, the employee assures that he shall not engage in any other activity nor work for any other organisation which shall stand or tend to stand as competition to the employer’s company in which the employee is employed.


Non-Solicitation

This covenant says that by executing this agreement, the employee assures that he shall not solicit any employee of the company or independent contractor associated with the Company on behalf of himself or any other company nor shall induce or lure them to terminate their relationship with the company they already exist with.

This covenant shall be in force throughout the tenure of employment of the employee and uptil one year of termination of employment of employee.


Soliciting Customers after Termination of Agreement

For a period of one year after the termination of employment, the employee shall not do the following activities:

  • Voluntarily or involuntarily disclose to any other person, firm or corporation the name, address or any other details of any of the customers or clients of the company etc.
  • Solicit, take away, and attempt to contact any client or customer of the company.


Injunction Remedy

The employee acknowledges upon signing this agreement that if he breaches any of the terms of this agreement then the company against whom he has done such breach has the full power and authority to execute injunction proceedings against the employee.


Severable Provisions

The clauses of this agreement shall be severable that is if some of the provisions of this agreement are illegible or unenforceable then the remaining provisions of it which can be enforced and are legal shall be put into force.


Modifications

This agreement shall only be modified in writing agreed upon by the employer and the employee.


Prior Understandings

The provisions of this agreement supersede all prior understandings and arrangement which may be entered into by the employer and the employee in relation to any of the related subject matter on this agreement.


Waiver

Any waiver to the provisions of this agreement must be mentioned in writing with the assent of the company and this must be done well in advance before the commission of the waiver act.


Jurisdiction and Venue

The Jurisdiction and Venue of the agreement must correspond to the jurisdiction of the company in which the employer is employed. The employer must also agree to comply with the laws of the said jurisdiction.



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