Non-compete agreement
Workforce Management Glossary
Non-compete agreement
What is a non-compete agreement?
A non-compete agreement is a clause outlined in an employee’s contract that essentially stipulates who an employee must not enter business with or for once their employment period is over.
Further non-compete clauses can also be added into contracts to ensure that the employee does not reveal business integral information to third parties during the course of employment or once employment has ended.
Why are non-compete agreements important?
Non-compete agreements have organisation wide benefits. Once non-compete agreements are inserted into a contract, a business has peace of mind that they can trust employees with important information, which essentially protects proprietary knowledge.
Signing a non-compete agreement can also be an indicator that an employee is looking for meaningful employment. As such, the job isn’t a stop gap or a step towards achieving something else. Rather, the employee intends to be with the company for the long haul.
Non-compete agreements are also effective tools when it comes to reducing employee turnover rates. With an inability to seek out positions at a direct competitor, it isn’t as easy to jump ship if a seemingly better opportunity presented itself.
How can businesses implement non-compete agreements?
In order to be effective and enforceable, non-compete agreements need to be signed at the commencement of the employer and employee relationship. With Roubler’s electronic document management system essential business information such as a non-compete agreement can be communicated via desktop and mobile. By eliminating the need for paperwork, employees can easily access and when needed, sign documents electronically.