An Employee Non-Compete Deed is a contract that stops (or, in legal jargon, "restrains") an employee from taking business away from their employer. Similarly, the document can be used when hiring a contractor.
The restraint usually applies while the staff are employed and for a further period after their employment ends. This post-employment period is typically anywhere from 3 months to 2 years depending on the agreement you reach with your staff. If the restraint period is longer than reasonably necessary to protect the goodwill in the business and would interfere with the employees right to make a living, the Court might refuse to enforce a long restraint period.
This document is also known as a Deed of Restraint or Non Solicitation Agreement.
An Employer can use the agreement to protect the goodwill in its business. That is, by preventing an Employee from taking clients, customers, employees and suppliers away from the business. It can also be used to protect an Employer's confidential information such a customer lists.
If your Employees have access to valuable client relationships and you want to make sure they don't take those relationships with them when their employment ends, you should ensure you put a binding Non Compete Deed in place. Without such an Agreement, your business could be very vulnerable.
Likewise, if you have worked hard to build up a team of great staff, you should make sure a rogue employee doesn't decide to start up in competition with you and take your staff to their new firm. You can protect your business by requiring your employees to sign a Non-Compete Deed (or inserting the non-compete clauses from this Deed into your employment agreement).
