In the present day, no business dealings are complete without signed Legal Forms. If you are buying or selling, taking the service of the contractor, appointing a sales or purchase agent, copyright assignments etc. a written agreement between the parties are necessary, to safeguard the interest of the parties. Verbally agreed contracts have no value in the eye of the law. Even law requires legally written documents as proofs, for any type of legal proceedings or dispute settlements.
An employer, while hiring an employee, needs to safeguard his business secrets from leaking out to his competitor or falling in the wrong hands through, the hired employee. It is also possible that, the employee, after gaining knowledge about the functioning of the business, may leave the job and join another rival company, having similar nature of business. Due to these reasons, it becomes necessary for the employer to draw Non-Compete & Non-Solicitation Agreements for maintaining privacy of his trade and compel the employee to sign the same.
Non-Compete Agreement is basically drawn to prevent the employee from joining another rival company, engaged in similar trade. The agreement also binds the employee from seeking employment, within a specific geographical area, after his resignation, dismissal, termination or voluntarily, leaving of the job.
Non-Solicitation Agreement forbids the employee from getting in touch or maintaining contact with the remaining employees, clients or customers of the company, after his employment termination.
Both agreements, bind the employee and any breach of the contract may accrue penalties for his misadventures of not agreeing to terms and conditions in the agreements. The agreement also helps the employer to preserve his business secrets.
It is also prevalent customs among the companies, that both upper and lower level employees should sign such agreements, for maintaining business secrets. Even co-owners of the company are also made to sign these contracts in the interest of the company.
You can also preserve your trade secrets by downloading these Non-Compete & Non-Solicitation Agreement Forms from Internet and get it signed by the employees.