A non-compete agreement is a legal contract that restricts an individual from working for a competitor or starting their own business within a specific industry or geographic area for a defined period. This type of agreement is often used to protect sensitive business information, trade secrets, and customer relationships.
Key Elements of a Non-Compete Agreement
To create a professional non-compete agreement template, you must include the following essential elements:
Standard Non-Compete Agreement Templates ᐅ TemplateLab
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1. Parties Involved
Clearly identify the parties: Specify the full legal names of both the employer and the employee.
Define the relationship: Clearly outline the employment relationship between the parties.
2. Non-Compete Clause
non-compete template – free to use
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Scope of Restriction:
Industry: Define the specific industry or field of work that the employee is prohibited from engaging in.
Geographic Area: Specify the geographic area where the employee is restricted from working or competing.
Time Period: Clearly state the duration of the non-compete restriction.
Permitted Activities:
Outline any exceptions or limitations to the non-compete clause. For example, you may allow the employee to work for a non-competing company or engage in certain types of consulting work.
3. Confidentiality Clause
Protected Information:
Specify the types of confidential information that the employee is obligated to protect, such as trade secrets, customer lists, and proprietary business information.
Obligation to Maintain Confidentiality: Clearly state the employee’s duty to keep confidential information confidential and not disclose it to third parties.
Return of Confidential Information:
Require the employee to return all confidential information and materials upon termination of employment or expiration of the non-compete agreement.
General Non-Compete Agreement Template (Download)
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4. Remedies for Breach
Injunctive Relief:
Specify that the employer may seek injunctive relief to enforce the non-compete agreement, such as a court order prohibiting the employee from violating the agreement.
Monetary Damages:
Outline the potential monetary damages that the employer may recover if the employee breaches the agreement.
5. Governing Law and Dispute Resolution
Governing Law:
Specify the jurisdiction whose laws will govern the interpretation and enforcement of the agreement.
Dispute Resolution:
Outline the preferred method for resolving disputes, such as mediation or arbitration.
6. Entire Agreement
Integration Clause:
State that the agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.
7. Severability
Severability Clause:
Specify that if any provision of the agreement is deemed invalid or unenforceable, the remaining provisions will remain in full force and effect.
8. Waiver
Waiver Clause:
State that the failure of either party to enforce any provision of the agreement will not constitute a waiver of that provision or any other provision.
9. Counterparts
Counterparts Clause:
Specify that the agreement may be executed in counterparts, each of which will be deemed an original.
Designing a Professional Template
To create a professional non-compete agreement template, consider the following design elements:
1. Clear and Concise Language
Use plain, simple language that is easy to understand.
Avoid legal jargon and technical terms.
Use short sentences and paragraphs.
2. Consistent Formatting
Use a consistent font, font size, and line spacing throughout the document.
Use headings and subheadings to organize the content.
Use bullet points to list key points.
3. Professional Layout
Use a clean and professional layout.
Use a white background and black text.
Use a sans-serif font, such as Arial or Times New Roman.
4. Legal Review
It is essential to have a lawyer review your non-compete agreement template to ensure that it is legally sound and enforceable.
By following these guidelines, you can create a professional non-compete agreement template that will protect your business interests.
