Career Advice

15 October, 2021

Reason for Non-Compete Agreements and Stipulations

A prospective employer may ask you to sign a contract or agreement that you will not work for a competitor while you work for them. They may also request that you avoid opening a similar business of your own for a certain amount of time after you sever the employment relationship. It's important to understand why prospective employers request this agreement so that you can make an informed decision about whether to comply.

All Businesses Must Protect Themselves

All businesses need to take certain measures to protect their assets. Thus, a risk management advisor may have advised your prospective employer to implement non-compete agreements as an extra measure of protection. It's not a personal attack on your integrity. It might be something that the employer does to minimize the risk on all ends.

You Hold Valuable Information

When you work for a company, you have access to their proprietary information and customer details. Even sales flyers or information about upcoming promotions can be considered confidential information. Your employer might want to prevent you from allowing such information to fall into the wrong hands. One of the most iron-clad ways to do that is to ensure that you don't spend time on a competitor's property or in any working capacity or open a similar business.

Competitors May Decide to Play Dirty

Business tactics can sometimes be grimy. Your prospective employer might take additional steps to ensure that no one else can bribe or coax you to give out their information by offering you a pay raise, promotion, or something else. In most cases, these sorts of things don't happen. However, an assertive business considers all possibilities.

You might know that you're 100 percent trustworthy, and you'd protect each company's information and treat them equally, as a worker. You might also know that you would never take their information or steal their customers for yourself. However, these businesses have a lot to lose by not asking for your signature. Consider those factors as you decide whether you want to proceed.