A non-compete clause might be included in an employment contract. This type of clause also referred to as a restrictive covenant is intended to restrict an employees` ability to compete or solicit with the employer or their affiliates or competitors after the term of employment ends. It is also intended to potentially safeguard any private or confidential information.
For the Employee
It is important for the employee to review the contract and seek legal advice to understand the terms, conditions and their rights and responsibilities as per the employment contract especially if there is a non-compete clause.
For the Employer
It is important for an employer to safeguard their trade secrets and ensure former employees will not attempt to gain a personal benefit by disclosing internal practices or attempting to solicit former clients.