As a business entering into employment contracts, you should be aware of the options available to prevent competitors from poaching your employees. One common post-termination restrictive covenant in employment contracts is a non-compete clause, which prevents an employee from moving to a competing business for a defined period after their employment is over. Using a non-compete clause can help protect your business. Still, if you plan to include one in an employment contract, you must understand the law in this area and the difficulty in enforcing it in practice. This article will explain what a non-compete clause is and touch on some key points to keep in mind about different types of non-compete restrictions. <\/p>\n\n\n\n
A non-compete clause (sometimes referred to as a restrictive covenant<\/a>) is a contractual clause that stops an individual from entering into an agreement with a competing business once the employment relationship is over. It is also helpful to note that non-compete clauses can be used for contractors such as external consultants hired to assist with a project. <\/p>\n\n\n\n Non-compete clauses typically specify the length of time an employee cannot work for a competitor if they leave your company (usually 3 -12 months). Some restrictive covenants may also include restrictions preventing an employee from working in a specified area, usually a specified radius around your business. <\/p>\n\n\n\n Employers can clearly benefit from using a non-compete clause. It can help them retain key employees, protect trade secrets<\/a> and confidential information, and prevent talent from leaving for a competing business. <\/p>\n\n\n\n Non-compete clauses can also incentivise employees to stay in their positions in the long term. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nAdvantages of Using a Non-Compete Clause<\/h2>\n\n\n\n