A Non-Compete Agreement (NCA) is a contract used to prevent an employee or contractor from working with competitors or starting a competing business for a certain period of time after leaving a job.
As an employer, you can use this to protect sensitive information, for example, client lists, pricing, strategies, or trade secrets, so that the information cannot be used by rival companies.
Non-Compete Agreement clauses and use cases
An NCA includes specific clauses that define how, where, and for how long a person is not allowed to work with competitors.
Some common clauses you should add to your NCA, include:
- Party details: Names, roles, and the services or products involved.
- Non-competition clause: The time period and geographic extent of the restriction.
- Governing law: The laws of the locality or region that will apply.
There are ideal times to use this document to your benefit, such as :
- When hiring employees with access to sensitive information.
- When working with freelancers or consultants.
- As part of the sale of a business.
- To prevent former staff from joining a direct competitor.
You can use our Non Compete Agreement Template to help you make sure each clause is clearly written and tailored to your situation.