A non-solicitation agreement, also known as a non-compete agreement, is a legal contract between an employer and an employee. This agreement prohibits the employee from soliciting the employer’s clients or customers, as well as other employees, for a specific period of time after leaving the company.
Non-solicitation agreements are a common tool used by employers to protect their business interests. These agreements are typically included as part of an employee’s contract or in a separate agreement signed at the time of hire.
The purpose of a non-solicitation agreement is to prevent a former employee from taking advantage of their knowledge of the employer’s clients, customers, and employees to compete against the employer. This can include contacting former clients to offer similar goods or services, or trying to recruit current employees to join a new company.
Non-solicitation agreements are typically limited in their scope and duration. The scope of the agreement should be clearly defined and limited to specific customers or employees. The duration of the agreement is also limited to a specific period of time, usually between six months and two years.
It’s important to note that non-solicitation agreements are different from non-disclosure agreements (NDAs) and non-compete agreements. NDAs prevent employees from disclosing confidential information about the employer, while non-compete agreements prevent employees from working for a competing business for a set amount of time.
Enforcing non-solicitation agreements can be tricky, as courts often view them as a restraint of trade. This means that courts may strike down an agreement if it is deemed too restrictive or an unreasonable burden on the employee.
In order to ensure a non-solicitation agreement is enforceable, it is important for employers to draft the agreement carefully and make sure it is reasonable in scope and duration. Employers should also make sure that employees fully understand the agreement before signing it and that they receive something of value in exchange for signing the agreement, such as a job offer or a promotion.
In conclusion, a non-solicitation agreement is a legal contract that prohibits an employee from soliciting the employer’s clients or employees for a specific period of time after leaving the company. While these agreements can be an important tool for employers to protect their business interests, it’s important to ensure the agreement is reasonable in scope and duration, and that employees understand and agree to the terms before signing.