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PLAYBOOK TEMPLATES
Non-Compete Non-Solicitation Agreement
A Non-Compete & Non-Solicitation Agreement restricts post-employment competition and solicitation of clients or employees. This playbook focuses on enforceability standards, scope limitations, and remedies for breach.
Non-Compete & Non-Solicitation
Negotiation strategy
Ensure the clauses are tailored to protect legitimate business interests, such as trade secrets and customer relationships, while remaining enforceable under applicable laws.
Negotiate for reasonable limitations in terms of duration and geographic scope to ensure the ability to earn a livelihood post-employment.
Essential elements
1
Non-Compete Obligation
Restricts competition post-employment.
2
Non-Solicitation of Customers
Prevents solicitation of former customers.
3
Non-Solicitation of Employees
Prevents solicitation of former colleagues.
Action framework
ACCEPT
Propose edits if the duration or geographic scope is excessive.
EDIT
Reject if the clause lacks a clear time frame or geographic area.
ADD
Add if missing, ensuring reasonable duration and scope.
PRO TIP
Always align non-compete clauses with industry standards and jurisdictional requirements to ensure enforceability.
Real-world examples
FAVORABLE
Preferred Non-Compete Clause
The Worker agrees that, for a period of [insert duration] following the termination of their employment, they will not, directly or indirectly, engage in or be employed by any business that competes with the Company within [insert geographic scope].
NEUTRAL
Jurisdiction-Specific Clause
Adjust clauses to reflect local legal standards, ensuring enforceability.
UNFAVORABLE
Overly Broad Non-Compete
The Worker agrees not to work in any capacity in the industry for five years post-termination.
Alternative scenarios & positions
High-Risk Projects
For projects involving sensitive information, stricter non-compete terms may be justified to protect proprietary data.
Entry-Level Positions
Non-compete clauses may be less stringent for entry-level roles to avoid undue hardship on the worker.
Remote Work Arrangements
Consider broader geographic scopes for remote roles, but ensure they remain reasonable and enforceable.
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WEEK 3
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WEEK 4
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