Non-compete agreements are becoming increasingly common in Australia, particularly in industries where competition is fierce and protecting confidential information is crucial. A non-compete agreement is a legal document that prohibits an employee from working for a competitor for a specified period of time after leaving their current employer.
If you`re an employer in Australia, it`s important to have a comprehensive non-compete agreement in place to protect your business interests. However, drafting a non-compete agreement from scratch can be a daunting task. That`s where a non-compete agreement template can come in handy.
A non-compete agreement template is a pre-written document that can be customized to suit the specific needs of your business. Here are some key elements to consider when putting together a non-compete agreement template in Australia:
1. Scope of the Agreement
Be clear about what activities are prohibited under the agreement. For example, will the employee be prohibited from working for a competitor in any capacity, or only in a certain role or department? Will they be prohibited from soliciting clients or customers?
2. Duration of the Agreement
Specify the length of time the non-compete agreement will be in effect. In Australia, non-compete agreements are generally limited to a maximum of 12 months.
3. Geographic Scope
Determine the geographic area that the non-compete agreement will cover. Will the employee be prohibited from working for a competitor in the same city, state or country?
4. Remuneration
Consider whether the employee will receive any financial compensation in exchange for agreeing to the non-compete agreement. This is particularly important if the agreement is likely to have a significant impact on their ability to find work in their chosen field.
5. Termination
Include provisions for how the agreement can be terminated, such as by mutual agreement or if the employee is terminated without cause.
It`s important to note that non-compete agreements must be reasonable in order to be enforceable in Australia. This means that they must be designed to protect legitimate business interests, such as confidential information or trade secrets, and cannot be so restrictive as to prevent the employee from earning a living.
In summary, a non-compete agreement template can be a useful tool for employers in Australia looking to protect their business interests. However, it`s important to consult with an experienced legal professional to ensure that the agreement is legally sound and enforceable.
