When you start a new job, it`s common for employers to require employees to sign employment agreements. These agreements may include provisions like non-disclosure agreements, non-compete agreements, and other clauses that limit what employees can do during and after their tenure with the company. If you`re not careful, you might be subject to an agreement that restricts your employment opportunities.
What is a non-disclosure agreement?
A non-disclosure agreement (NDA) is a contract between an employer and an employee that prohibits the employee from sharing any confidential or proprietary information about the company. This can include anything from trade secrets and business strategies to customer lists and financial information. NDAs are usually put in place to protect a company`s competitive advantage and prevent employees from taking that knowledge to a competitor.
What is a non-compete agreement?
A non-compete agreement (NCA) is a contract that prohibits an employee from working for a competitor within a certain geographic area and for a specific amount of time after leaving the company. They`re designed to prevent employees from taking the knowledge, skills, or contacts gained while working for one company to a competitor in the same industry. They`re often used in industries where employees have access to sensitive information or trade secrets.
What other clauses might be in an employment agreement?
Employment agreements can be filled with various clauses that may limit what employees can do during and after their tenure with the company. Some other common clauses include:
– Non-solicitation agreements: which prevent employees from soliciting or recruiting other employees or clients from the company
– Intellectual property clauses: which state that any work created while employed by the company belongs to the company
– Termination clauses: which outline the circumstances under which the employer can terminate an employee`s employment
Why should you be aware of these clauses?
It`s essential to be aware of the clauses in your employment agreement because they can have a significant impact on your career. For example, an NCA could prevent you from finding a new job in the same industry if you`re restricted from working for a competitor. Additionally, an NDA could limit your ability to discuss your previous work experience with potential employers.
What should you do if you`re subject to an employment agreement?
If you`re already employed and have signed an employment agreement, it`s important to review it carefully and understand the clauses you`re subject to. If you have questions or concerns about any of the clauses, you should speak with your employer or an attorney.
If you`re job-hunting, you should also carefully review any employment agreements offered to you. If you`re uncomfortable with the clauses, you can negotiate with your potential employer to modify or remove them. Keep in mind; some employers may not be willing to negotiate, and declining to sign the agreement could cost you the job offer.
In conclusion, it`s important to understand the clauses in your employment agreement, including non-disclosure agreements, non-compete agreements, and other clauses, and how they may impact your career. If you have any questions or concerns about these clauses, seek legal advice or speak with your employer before signing the agreement.