Release of Non-compete Agreement

Release of Non-compete Agreement

Employers provide non-compete agreements either during the employment process or when the employer-employee relationship ends due to termination or resignation. Through this, employers may prohibit workers from entering and working for businesses of the same or in direct competition with the employer. However, this arrangement questions the employee’s freedom to leave. In this case, the release of the non-compete agreement is essential. This agreement frees the employees from liabilities out of the contract signed.   Read More

What is a Release of Non-Compete Agreement?

A release of non-compete agreement functions similar to an employee non-disclosure agreement yet of different coverage. This agreement frees the employee for responsibilities over the restrictive covenant or a compete clause in the agreement. This also includes the responsibilities for trade secrets and business confidentiality of the operations, clients, customers, methods, strategies, ideas, business interests, and other assets restricted for the company only.

How to Create a Release of Non-Compete Agreement

Like other documents, creating a release of the non-compete agreement follows a process. This agreement is a one-page form that comprises three vital sections. To create this document appropriately, you have to check whether you have included the mentioned parts in your sheet. To start with, kindly refer to the steps stated below.

1. Concur with Applicable State or Country Laws 

Making sure that your agreement is enforceable by the applicable law, you have to ensure that the content concurs with its provisions. That is why you take research as a priority before you start constructing your release of a non-compete agreement. Once you’ve checked the potency of your content toward the governing laws that your state or country follows, you may proceed with the proper writing. As stated earlier, this part comes in three sections. These parts are as follows. 

2. Basic Information of the Involved Parties

Once you’ve settled with the first step, you may now add the necessary information of the releasor (referred to as the employer) and the releasee ( referred to as the employee). The information shall include the name, complete address, and the date this agreement takes effect. Just make sure that all details are accurate for the credibility and accuracy of the document. 

3. State the Considerations

Aside from the existing laws, lack of considerations is what makes the agreements unenforceable. This is one of the common mistakes that people commit when creating an agreement. Hence, the consideration shall cover the entities involved and, in what instance, shall the releasor and releasee be accountable for. Essentially, this agreement shall clearly define and set the parameters. Once you finish this part, you may now incorporate formal claims of acceptance, of which the undersigned both concurred.

4. Execute Then Sign

Lastly, you have to state the executed date of this agreement. Then, the releasor (employer) must sign the release of a non-compete agreement. Signatures prove the identity of the persons involved and authorize the document to be effective. Moreover, this serves as the agreement’s seal of approval. Also, signatures safeguard both parties. Before signing this document, all parties shall read and understand the content of the agreement. This action saves releasors and releasees from unnoticed changes that any of the involved entities illegally altered. 


Why are release of non-compete agreements important?

Non-compete agreements may stop you from exploring new opportunities and jobs. That is why the release of non-compete agreement is essential since these forms free the person from liabilities relating to the business or companies involved. The considerations of this agreement vary according to existing negotiations.

How to defeat a non-compete agreement?

There are various grounds that you may defeat a non-compete agreement. These are as follows: (i) Releasee shall present and defend that the new position or opportunity would not violate the terms stated in the non-compete agreement. (ii) Employers engage in illegal activities toward their clients or customers. (iii) The employer lacks legitimate business interests. (iv) The non-compete agreement has broad nature, including terms of time and activities. (v) The employer violated the terms presented in the employment contract. (vi) Tricks and deception into signing the agreement. (vii) The employee has been terminated without cause. (viii) Signatures are missing in the non-compete agreement

What are the disadvantages of a non-compete agreement?

When an employer requires employees to sign a non-compete agreement, they might leave the company or the employer earlier than expected. When an employer forces the employee to sign this agreement with too many restrictions added, this may end with litigation.

Do I need to notarize my release of non-compete agreement to certify its validity?

Notarization does not certify the validity of your non-compete agreement. A notary only validates the persons involved in the agreement to avoid any attempt or act of fraudulence or identity theft. The signature coming from the releasor is already enough for its validity. As long as the signature is proven not forged, then it suffices.

Confidentiality is always a primary concern for various companies. That is why employers typically present a non-compete agreement upon the person’s employment. However, due to employees’ freedom and inhibitory concerns, the release of non-compete agreement becomes viable for use. As this agreement frees the employees from liabilities, this not means absolute loose of a hold.