How To Formulate Anti Competitive Agreements

Will an employee leave her job? Will he or she take away some of the business information inside the company? Will it become your competitor? Will you secretly compete for your customers? Will you take advantage of those secret channels that make the company in the leading position of the industry? Obviously, if the staff turnover will cause these problems, the bosses will not be willing to lose any employee.

One way to avoid these situations is to sign agreements with employees and limit their powers so that they can not compete with you. If both sides agree, the agreement can be used as a prerequisite for employment relations. The annex provides samples of various anti competitive agreements involving agreements signed with managers, professionals, artists and inventors. These samples have been used in conventional protocol terms for reference. Since the laws on anti competitive agreements vary from country to country, any company should consult a legal adviser before drafting an anti competition agreement. The companies should formulate anti competitive agreements according to their actual conditions.

Anti competition agreement sample

Example 1:

The agreement is very complete and applicable to employees who have not signed formal employment contracts.

Rebel against open and rebellious competition

(1) the name of the employee agrees not to disclose the name list, trade secret or other confidential information of the company name when the agreement comes into effect and terminates. "Employee name" agrees to take reasonable safety precautions against accidental leakage and espionage activities within the industry.

(2) during the entry into force of the agreement, the employees agree to do their best to complete their duties and comply with the anti disclosure and anti competition provisions in the agreement; for this reason, the company also has compensation for employees: [expressing specific compensation methods]. After the termination of the agreement, the name of the employee agrees not to compete with the company within the year limit and within the kilometre of the company name and place. This clause shall no longer apply if the agreement is terminated because of a breach of the agreement.

Competition means setting up companies involved in the following businesses or working for companies involved in:

(3) if there is a breach of the clause (2) of the agreement, [employee name] agrees to pay [amount: RMB yuan].

By mutual consent, the name of the company is signed together with the name of the employee.

　　----------------------------

Corporate name

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Employee name

Date: it is: the first, the second and the third.

Example 2:

The sample should be used as an employment contract. Employee handbook Part of the provisions. The agreement can be signed independently or may be signed jointly with other employment agreements.

Anti disclosure and anti competition

(1) after the termination of the agreement, [employee name] agrees to keep the patent of the company name, the trade secret and the trade secret of the trademark, and does not disclose any information to others.

(2) once a competitor is hired with the name of the company, [employee name] agrees not to make use of the research results carried out during the work of [company name].

(3) after the termination of the agreement, [employee name] is agreed to [deadline (e.g., four months or ten years)] and does not compete directly with the company within the "company name and place" (km).

(4) it has been verified that there is a violation. Agreement The employee's name is agreed to pay [amount: RMB yuan].

By mutual consent, the name of the company is signed together with the name of the employee.

　　----------------------------

Corporate name

　　----------------------------

Employee name

Date: it is: the first, the second and the third.

Example 3:

This clause can only be signed as part of the employment contract or employee handbook.

Anti competitive compact

(1) during the work of [company name], [employee name] agrees not to compete with [company name] in [specific business]; after the termination of the agreement, [employee name] agrees to [deadline (e.g., four months or ten years)] and does not compete with the company within the "company name and location" (km) kilometer area.

(2) in this anti competition clause, competition refers to the employment or employment of the name of the employee or the former client or person or organization when the name of the employee is engaged with the company name.