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When you’re joining a new client, you want to make sure that there are no awkward circumstances that might pop up in the future. You don’t want to find yourself in an uncomfortable situation where you feel like you have to leave your new client. This can happen if your contract is weak and leaves room for interpretation. Or, it can happen if the terms of your contract are vague. In either case, a non-compete agreement can help protect you from any potential awkwardness in the future. A non-compete agreement is essentially a contract stating that as part of your services, you won’t work for one or more competitors after leaving this current client. It’s also known as an “non compete clause” or “restrictive covenants agreement.” Read on to learn more about what they look like, why they matter, and how to include them in your contracts going forward.
What Are Non-Compete Agreements?
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A non-compete agreement is a type of contract that some clients will ask you to sign once you’ve been accepted on the team. The non compete agreement joining client is essentially a contract stating that as part of your services, you won’t work for one or more competitors after leaving this current client. To be clear, the non-compete agreement has nothing to do with copyright or patents. It’s not about giving up any of your intellectual property, but rather, it’s about restricting your future activities. This means that if you sign a non-compete agreement and then leave your client, you aren’t allowed to work for one or more competitors for a specific period of time (usually one year).
Why Should You Include a Non-Compete?
When you’re joining a new client, you want to make sure that there are no awkward circumstances that might pop up in the future. You don’t want to find yourself in an uncomfortable situation where you feel like you have to leave your new client. This can happen if your contract is weak and leaves room for interpretation. Or, it can happen if the terms of your contract are vague. In either case, a non-compete agreement can help protect you from any potential awkwardness in the future.
How to Write a Non-Compete Agreement
The exact details of your non-compete will be determined by the client and your specific situation. However, there are a few things that should be included in every non-compete agreement: – What types of work are covered by the non-compete? First and foremost, you want to make sure you’re clear on the type of work that’s covered by the non-compete. This will help you know what types of clients you can take on in the future. – When does the non-compete start and end? Your client will likely want the non-compete to start as soon as you sign the contract, while you’ll want to include a grace period at the end (typically six to 12 months). – What happens if you break the non-compete agreement? If you decide to go against the non-compete agreement, what are the potential consequences? – What happens if the client breaks the non-compete agreement? You should also include a clause about what happens if the client breaks the agreement. – Does the non-compete agreement last for one year or one client? This might seem like a no-brainer, but make sure that the non-compete agreement is tied to one year. If you sign multiple contracts with one client, you’ll want to make sure that each contract has its own non-compete agreement.
When You Don’t Need a Non-Compete Agreement
There are times when you don’t need a non-compete agreement. For example, if you’re joining a startup with five employees and no plans to grow, a non-compete agreement might not be necessary. In this case, it’s unlikely that you’d be taking clients away from the founders. However, if you find yourself in one of these situations, it might not hurt to include a non-compete agreement just to be safe. If you’re joining a large company or a company with plans to grow, you might want to include a non-compete agreement.
Wrapping Up
Non-compete agreements are important contracts that protect you from future clients. If you’re joining a new team, remember to ask about the client’s non-compete agreement and if there are any provisions that you need to change. If you’re signing a client, remember to include a non-compete agreement in your contract. Now that you know what non-compete agreements are, why you might want them, and how to write them, make sure that you include them in your contracts. This will help protect you from future awkwardness and ensure that your business remains strong.