Newly hired employees may encounter this when they are signing their agreement for the job they applied for. Since we know that agreements may take up a huge length of time in reading, and with a good reason. There is a part of the agreement that tells newly hired employees of a non-compete agreement, wherein, the employee must read, understand and sign in order to get hired. But what some may not understand is that this kind of agreement is made and is legally binding when the employee resigns from the company. You may already be familiar with this as we go along, however, it is still important and nice to have a refresher on what an employee non-compete agreement is and why you and the employee should adhere to the rules of this kind of agreement.
An employee non-compete agreement is a binding document between the company who is hiring and the employee. The agreement is made in order to explain to the employee that they are not allowed to work for another company with the same nature of business as the ones the employee is currently working in. It also goes without saying, when the employee wishes to resign from the company they were once employed in, they are reminded of the employee non-compete agreement they have signed. It does not necessarily mean because they have resigned from the company, that they could look for the same type of work as what they had before. As this would break the employee non-compete agreement they have signed. The agreement that they have signed will still be in place, but for the length of it may depend on the company.
As an employer, it is your responsibility to make an employee non-compete agreement. To give your employees the reason why it is not professional to have them work for a different company while they are working with you, or when they no longer work for you as well. As there are specific reasons that make the agreement necessary. With that being said, how to make an employee non-compete agreement tips are listed below.
Defining your employee non-compete agreement. The definition for this would simply be a short description as to what your employee may be expecting. What the non-compete agreement is about, how it works and what will happen if the employee breaks it. In addition to that, it is also best to add in the agreement how many months or years the employee must not seek the same nature of the job.
The name of the employer, the company and the full name of the employee must also be present. As this non-compete agreement basically works just like any other kind of agreement. So this information is also crucial. Without this piece of information, your entire agreement is useless.
Signatures are important. Apart from the name of the employer, the company and the employee’s names. As well as the details and the reason for the agreement. The next necessary thing to notice is the signatures. The signatures are present in order to know that the employee read and understood that this agreement is serious and legally binding.
Last but not the least, proofread your agreement. Just to make sure that before you hand it to your employee for them to sign, you have all the information, the reason and the space for signatures placed in the document. You have placed the consequences and the laws that support the non-compete agreement, based on the state you are in as well.
A document between the company and the employee. A binding document that informs the employee that they are not allowed to entertain another company with the same nature as the work they are employed.
The non-compete agreement is important in order for the employee to know the rules and the regulations of the company. As well as to understand that they can take just about any other job as long as they are not destroying the agreement they have signed in their previous employment.
The most important thing in a non-compete agreement is the explanation, the definition and of course the name and signature of the employee. As this binding agreement only works if the information are all present.
An employee non-compete agreement is an important part and an important document that all employers have to go through in handing to newly hired employees. This allows them to give the employee an opportunity to understand that regardless of where they may be working or who they are working for, they must not have another job of the same nature, or they are breaking the agreement with their employer.
