Geography includes the local territory or region in which the company operates and where the employee should not create a direct or indirect competing business. Most States adopt a kind of standard according to which a non-competition clause must not be monstrous in terms of time or geographical scope and should not usefully limit a worker`s ability to find employment. However, legal systems differ greatly as regards the interpretation of the excessively onerous conditions of a non-competition clause. An example of non-competition would be between a company that already has about three or four companies as competitors in a similar sector and a seller working for the company. The agreement can then ensure that this seller does not come into contact with its competition and thus discloses private information such as its customer list, etc. Another example could be that of a software company that signs a non-compete clause with its developers so that they cannot interact with competitors on new products developed. The attempt to ask current employees to enter into a non-competition clause is a little more difficult and complicated than when new employees are invited. For example, you are the owner of a well-established company that has received confidential information about the operation of the business. Before passing this information on to current employees, they must agree not to share or practice this information with other companies by entering into a non-compete agreement. Refusal to sign could result in the dismissal of an employee. Non-competition rules are applied when a relationship between an employer and an employee ends and the employer wishes to prevent the worker from competing with them in his next position, works for a competitor in the same market or sets up another company in the same sector (and recruits the company`s workers to join them).
Non-competition rules differ from non-disclosure agreements (NDAs) which generally do not prevent an employee from working for a competitor. Instead, NDSSs prevent the employee from disclosing information that the employer considers proprietary or confidential, such as. B customer lists, underlying technologies or information about products under development. There is also a strong argument that a worker dismissed for refusing to sign an inappropriate non-compete obligation could be entitled to dismissal against the employer in violation of this public policy of the state. . . .