Covenant not to Compete (CNC) Agreements

Covenant not to compete (CNC) agreements are contracts made between a party (usually an employee) who agrees not to pursue or compete in a similar profession or trade against another party (usually the employer).

CNC agreements are primarily designed to discourage an employee, who resigned or had been terminated, to work for a competitor or start a business and gain unfair advantage by using confidential information about a former employer’s operation or trade secrets and information such as customer/ client lists, business practices, marketing schemes, and future products or plans, among others.

Although the law holds that as a matter of public policy, a person cannot be barred from carrying out a trade in which he/she has been trade except in matters where an employer must be protected, a CNC agreement may be used against an employee to prevent him from working elsewhere. Although CNCs may contain such limitations, to be legally binding, a non compete agreement has to properly limited geographically, within a certain period of time, limited by industry and also limited to a legitimate interest of an employer.

An employee-employer dispute may arise out of an improperly-drafted CNC agreement. Hence to be valid, a non compete agreement must be narrowly designed to meet the needs of an employer and the concerns of employees.

Our employment lawyers at Attorney Services Etc have gained both experience and expertise in drafting vital documents such Covenant not to Compete (CNCs) Agreements and can represent you in resolving issues related to violation of non compete agreements or to have a non-compete agreement declared invalid by courts.