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Confidentiality and IP

Non-compete agreement template

Non-compete agreement: A non-compete agreement restricts a person or business from competing with another for a limited time and area, usually after employment or the sale of a business ends.

Last reviewed 6 November 2026 · 6 clauses · General guidance, not legal advice

Upload yours for a review and e-signature, or save it as a team template.

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When to use a non-compete agreement

  • Selling a business and protecting the buyer’s goodwill
  • Senior hires with access to strategy and key clients
  • Joint ventures where partners agree not to compete

Non-compete agreement template: clause-by-clause outline

Sample starting wording for each clause. Replace the text in [brackets] with your details.

  1. Restricted activity

    For the Restricted Period the Restricted Party will not engage in [describe competing business].

  2. Restricted period

    The Restricted Period is [6] months from the end of [employment / the sale].

  3. Restricted area

    The restriction applies in [specific cities, regions or countries where the business actually operates].

  4. Consideration

    In return the Restricted Party receives [payment, shares or other value].

  5. Reasonableness

    The parties agree these restrictions are no wider than reasonably necessary to protect legitimate business interests.

  6. Severability

    If any restriction is found unenforceable, it will apply with the minimum change needed to make it enforceable.

What to check before you sign

  • Is a non-compete enforceable for employees where you are? Several countries and US states restrict or ban them.
  • Is the scope limited to real competitors and real markets?
  • Is there consideration, such as garden-leave pay?

Signing formalities: Employee non-competes are banned or heavily limited in some jurisdictions. Check local law before relying on one.

How to send a non-compete agreement for e-signature

  1. Draft or upload it. Use the outline above with your own wording, upload an existing document, or save it as your organisation’s template.
  2. Check it against your playbook. Points outside your positions are flagged, and approval rules route it to Legal when needed.
  3. Send it by email. Signers get a plain-language review and a secure link, sign on any device in the order you set, and can suggest changes as tracked changes.
  4. Keep the signed PDF. Everyone receives it with a certificate of completion, and key dates go to Upcoming with reminders.

Non-compete agreement template: frequently asked questions

Are non-compete agreements enforceable?

It depends heavily on the country and the role. Courts generally enforce narrow restrictions tied to a business sale and limit or void broad ones for ordinary employees.

What is a reasonable non-compete period?

For employees, a few months is more likely to stand. For business sales, longer periods are often accepted.

Is an electronically signed non-compete agreement legally binding?

Often, but not always. Employee non-competes are banned or heavily limited in some jurisdictions. Check local law before relying on one. econtracts.ai shows the rules for the contract’s governing law before you send it.

Can I get a non-compete agreement I received reviewed?

Yes. Upload it to econtracts.ai and you get a plain-language review: key dates, money and points to check, each quoting the clause it comes from.

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This outline is a starting point for discussion, not legal advice, and it is not a complete contract. Laws differ by country and sector; have a qualified lawyer review contracts that matter.