When preparing legal documents, it is important to take into account the advice of a lawyer or legal representative. Ask a lawyer to read your contract and look for any omissions or defects. You want your non-compete clause to be airtight, so don`t think it`s just because you used a free non-compete proposition. This Agreement shall enter into force as soon as the Employee or Contractor terminates its relationship with the Company. There are some ways for a company to develop non-compete rules and a few scenarios in which they would be useful. In examining the applicability of a non-compete obligation, the Tribunal examines the relevance of its temporal and geographical limitations and balances the worker`s right to work with the employer`s legitimate interests. The non-competition rules must be very specific to what they prohibit. A business can`t stand in the way of a former employee`s ability to earn income – it wouldn`t be and shouldn`t be. For this reason, the contract must indicate a particular region and sector or position that the employee was unable to assume immediately after leaving. If we can help your company draft your non-compete rules or verify your existing non-compete clause, please feel free to contact our Raleigh law firm at (919) 615-2473 or by filling out the contact form below. That is why it is important, when designing, that you are very specific and that all laws are followed to the letter. These are agreements that are an excellent way to protect commercial interests. But they must be formulated in a fair manner so that workers` rights are also taken into account.
It is more difficult to impose prohibitions on competition in low-wage, unskilled labour sectors, as unskilled workers tend to be easier to replace and less likely to do business with them. Indeed, several government officials have questioned the validity of the competition bans signed by delivery drivers for sandwich company Jimmy John`s and warehousing workers for online retailer Amazon.com. The non-competition period must be reasonable and is usually set by the State. Competition bans usually last two to three years. A non-competition clause is a formal agreement between an employer and a worker that the worker does not engage in employment activities in conflict with or in competition with his or her main activity. Companies use non-compete rules to ensure that their employees do not engage in business activities that could reduce the company`s market share. No no. There is no legal or customary obligation that a non-competition clause must be notarized. . . .