Non-solicitation Contract Language: What It Is and Why You Need It
As a business owner or hiring manager, you want to protect your company`s assets and prevent the loss of clients and employees to competitors. One way to do this is through the use of non-solicitation contract language in employment agreements.
What is Non-Solicitation Contract Language?
Non-solicitation contract language is a legal clause used in employment contracts that prohibits employees from soliciting or recruiting clients, customers, or colleagues from their current employer after leaving the company. This clause is designed to protect your company’s intellectual property, trade secrets, and confidential information.
Why You Need Non-Solicitation Contract Language
There are several reasons why you should include non-solicitation contract language in your employment agreements:
1. Protects your company`s assets: Non-solicitation clauses are an effective way of protecting your business’s client base and confidential information.
2. Prevents poaching of employees: Non-solicitation clauses help prevent the loss of key employees and the theft of valuable company assets by competitors.
3. Ensures compliance with labor laws: In some jurisdictions, non-solicitation clauses may be subject to certain legal requirements. It’s important to familiarize yourself with the applicable laws in your jurisdiction before drafting your agreement.
What Should You Include in Your Non-Solicitation Clause?
Your non-solicitation clause should be carefully crafted to ensure that it is enforceable and effective. Here are some key elements to consider when drafting your clause:
1. Scope of the Clause: Be specific about the activities you are prohibiting. For instance, you might prohibit employees from soliciting clients or colleagues they worked with in the past year.
2. Time Limitations: Specify the length of time the non-solicitation clause will be in effect after the employee leaves the company. This could be anywhere from six months to a year or more, depending on the nature of your business.
3. Geographic Limitations: Consider whether you want to limit the clause’s scope to a specific geographic area, such as a city or region, where the employee worked or where your clients are located.
4. Exceptions: Consider including exceptions to the non-solicitation clause, such as if a client approaches the employee on their own without solicitation.
5. Remedies: Specify the remedies available to you in the event of a breach of the non-solicitation clause. These could include injunctive relief, damages, or attorney`s fees.
Conclusion
Non-solicitation clauses can be a valuable tool for protecting your company`s intellectual property, trade secrets, and confidential information. However, it’s important to ensure that your clause is carefully crafted to be enforceable and to comply with applicable labor laws. By including non-solicitation contract language in your employment agreements, you can help minimize the risk of losing key employees and clients to competitors.