What is a non-solicitation clause in a contract?
A non-solicitation agreement is a contract, usually between an employer and an employee that governs the employee’s right to solicit customers of the business after he or she leaves his or her employment. Non-solicitation agreements can serve a valuable purposes for many businesses.
How do I get around a non-solicitation agreement?
Escaping Nonsolicitation Agreements
- Don’t sign.
- Build your book independently.
- Carve out pre-existing relationships.
- Require “for cause” termination as the trigger.
- Provide for a payoff.
- Turn clients into friends.
- Don’t treat clients as trade secrets.
- Invest in your own business.
What is a non-solicitation policy?
A nonsolicitation agreement is a contract in which an employee agrees not to solicit a company’s clients or customers, for his or her own benefit or for the benefit of a competitor, after leaving the company.
Are non-solicitation clauses enforceable in UK?
Non-compete clauses and restrictive covenants are highly enforceable in the UK in order to protect the business the employee is leaving. They have to be narrowly defined and should only stay enforced for the time that is required to protect the business.
What is indirect solicitation of employees?
“So,” you may ask, “what is ‘indirect’ solicitation?” “Indirect solicitation” is soliciting customers by means other than direct communication. It is your trying to get those customers’ business, or your former colleagues to leave your employer, by some way or another without directly asking them to “come on over.”
What is a Non Solicitation Agreement in New Zealand?
This is a comprehensive New Zealand focused non-solicitation agreement between a contractor and a business owner providing limitations on the extent to which the contractor may solicit the employer’s clients or customers.
Can a non solicitation clause be a restraint of trade clause?
It is important not to get “Restraint of Trade” clauses mixed up with Non Solicitation clauses. Take a look at my Non Solicitation page for more information. The essential elements of a “Restraint of Trade” clause are: Usually defined as a radius of so many kilometres from a known geographical point.
What’s the difference between non competition and non solicitation?
Non-Competition: prevents a former employee from working for a company that conducts work that is similar to their former employer’s business. Non-Solicitation: allows a former employee to work for a company in a similar field or industry. However, they are not allowed to contact clients from their former employer about the new business.
What does a non solicitation clause cover for a former employee?
The second area these clauses cover is protection over the current clients and customers of the former employer that the former employee has had dealings with. Non Solicitation clauses are usually defined for a set period of a number of months.
