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Non-Compete Agreement
I need a non-compete agreement for an employee in a mid-level sales position, restricting them from joining a competitor or starting a similar business within a 50 km radius for 12 months after leaving the company. The agreement should include confidentiality clauses and specify that it applies only if the employee voluntarily resigns or is terminated for cause.
What is a Non-Compete Agreement?
A Non-Compete Agreement is a legal contract where employees promise not to work for their employer's competitors or start a competing business after leaving their job. Under Irish law, these agreements must be reasonable in their scope, duration, and geographic limits to be enforceable.
Irish courts generally look closely at these agreements to ensure they protect legitimate business interests without unfairly limiting someone's ability to earn a living. They typically allow restrictions lasting 6-12 months and often require employers to pay employees during the restricted period. The agreements commonly appear in senior roles, technology sectors, and situations involving sensitive trade secrets.
When should you use a Non-Compete Agreement?
Use a Non-Compete Agreement when hiring employees who will have access to sensitive business information or valuable client relationships. These agreements are particularly important for senior executives, sales professionals, and technical specialists who could take your competitive advantage to rival firms.
In Ireland's tech and professional services sectors, these agreements protect intellectual property, customer lists, and trade secrets. They work best when introduced during the initial employment contract negotiations. Key moments to consider them include hiring for leadership positions, bringing in specialized talent, or when employees will develop unique processes or technologies for your company.
What are the different types of Non-Compete Agreement?
- Non Compete Contract: Standard employee agreement protecting company interests after employment ends
- Subcontractor Non Compete Agreement: Tailored for temporary workers and contractors who access sensitive information
- Non Compete Non Solicitation Agreement: Combines competition restrictions with client protection clauses
- Non Compete Agreement Between Companies: Used during business partnerships or merger discussions
- Non Solicitation Agreement For Independent Contractors: Focuses specifically on preventing client poaching by freelancers
Who should typically use a Non-Compete Agreement?
- Employers: Technology companies, professional services firms, and other businesses draft Non-Compete Agreements to protect trade secrets and competitive advantages
- Senior Executives: Often negotiate these terms during employment contracts, particularly in roles with access to sensitive strategic information
- Sales Teams: Bound by restrictions on client contact and business development in their market sector after leaving
- Legal Counsel: Draft and review agreements to ensure enforceability under Irish law while balancing employer protection with employee rights
- HR Directors: Implement and manage these agreements as part of employment policies and staff contracts
How do you write a Non-Compete Agreement?
- Scope Definition: Map out specific business interests needing protection - client lists, trade secrets, or specialized knowledge
- Time Limits: Determine reasonable restriction period, typically 6-12 months in Ireland to maintain enforceability
- Geographic Bounds: Define specific regions where restrictions apply, keeping them proportional to business reach
- Role Details: Document employee's position, access to sensitive information, and client relationships
- Compensation: Calculate any "garden leave" or restricted period payments required under Irish law
- Document Generation: Use our platform to create a legally-sound agreement that includes all essential elements
What should be included in a Non-Compete Agreement?
- Parties: Full legal names and addresses of employer and employee/contractor
- Business Interest: Clear description of legitimate interests being protected
- Duration Clause: Specific timeframe of restrictions, typically 6-12 months in Ireland
- Geographic Scope: Precise definition of restricted territories or markets
- Restricted Activities: Detailed list of prohibited competitive actions
- Compensation Terms: Payment details for restricted period if required
- Governing Law: Explicit reference to Irish law and jurisdiction
- Severability Clause: Ensures partial enforceability if any section is invalid
What's the difference between a Non-Compete Agreement and a Non-Disclosure Agreement?
While both protect business interests, a Non-Disclosure Agreement and a Non-Compete Agreement serve distinct purposes in Irish business law. A Non-Disclosure Agreement focuses specifically on protecting confidential information, while a Non-Compete Agreement prevents competitive activities after employment ends.
- Scope of Protection: NDAs primarily safeguard confidential information and trade secrets, while Non-Competes restrict future employment and business activities
- Duration: NDAs often remain valid indefinitely for trade secrets, while Non-Competes must have reasonable time limits (typically 6-12 months) to be enforceable in Ireland
- Enforcement Focus: NDAs target information sharing and misuse, while Non-Competes prevent direct market competition
- Legal Scrutiny: Irish courts generally enforce NDAs more readily than Non-Competes, which face stricter review for reasonableness and employee rights
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