When starting a business, you may not realize the full breadth of the task. You may begin with what you believe is the fundamental knowledge you need to get the company up and running.
As your business begins to take off and expand, new challenges may arise. These may bring to light new policies and procedures that you should enact to ensure the company continues to thrive as it has. If you start to worry about employees taking their training and insight into the business elsewhere, you may want to consider implementing noncompete agreements going forward. Familiarize yourself with why this type of action may work for your business.
The purpose of a noncompete agreement
As a business owner, you need to protect your company’s interests from those who seek to take clients and customers away. The poaching that goes on in the business world is rampant, and high-level employees may find themselves a target of a competitor’s lure to jump ship. A noncompete agreement stops this practice by placing constraints on former employees. These constraints disallow them from working in the same industry for a specific amount of time. If you discover a former employee violated the noncompete, you may take legal action.
The flexibility of a noncompete
There are some standard provisions businesses often include in noncompete agreements. However, one of the benefits of this type of document is that you can personalize it as you see fit. You may include not only restrictions on who a former worker works for but also the mileage range of potential employers and the timeframe through which the noncompete is enforceable. It is standard practice to make a noncompete agreement a contingency for employment offers.
When creating a standard noncompete agreement for your company, you may want to gather more information. Follow this link for more relevant insight.