Non-solicitation Agreement Template

Non-Compete or Non-Solicitation Agreement

There are subtle but crucial differences when it comes to Non-Compete or Non-Solicitation Agreements. Both agreements are used to prevent former employees from taking existing clients from a previous employer. However, a Non-Compete Agreement is much more restrictive.

A Non-Compete Agreement forbids a former employee to work in a particular industry, usually for a certain amount of time and in certain areas. Upon the expiration of the agreed date, the employee is free to work in the same industry. For example, an employee works in the energy sector and if this agreement is signed, they would be prevented from working in this same sector for a fixed amount of time.

However, a Non-Solicitation Agreement is much less restrictive and does not impose any restrictions concerning new jobs. An employee can freely apply for another job in the same sector, sometimes even in the same area. They will however, not be able to take on any clients that "belong" to their former employer.

If the matter goes to court, Non-Solicitation Agreements are more favorable as the agreement will not impede the chances of finding a new job.

What Should a Non-Solicitation Agreement Include?

If you are a business looking to create a Non-Solicitation Agreement, you need to ensure it contains all of the correct points in order to best protect your company and win any potential court battles with a former employee. The agreement should cover:

• The date that the document comes into effect;
• Provide the details of the company (including name and address) and a specific business area of which the agreement is valid for;
• Provide details of the employee that will have access to specific information in the outlined business area;
• The agreement should come into effect at a certain time. The conditions of this activation should be clearly outlined, particularly the conditions regarding the events that would trigger this activation;
• Details surrounding the expiration of this time period should also be outlined, specifically the date;
• If there are certain conditions that could trigger an early termination of the agreement, for example, if the company goes into liquidation, this should also be clearly described;
• If there are certain locations that are covered by the agreement, this should be mentioned;
• The document should explain if this agreement concerns all employees or only a select few;
• The document should also explain if the agreement concerns only some or all clients;
• If there are specific practices that need to be covered by the agreement, these should be included;
• If the employee has any sensitive information that should not be disclosed, this clause can be added to the agreement;
• Include the state that this agreement is covered by and any other additional information which could be of importance;
• The document must be signed and dated by both the employer and employee.

Haven't found the template you're looking for? Take a look at the related templates below:

• Compensation Agreement Template;
• Employee Arbitration Agreement Template;
• Employee Handbook Template.