What is a non-compete clause?

A non-compete clause is a provision in an employment contract that restricts an employee from engaging in competitive activities after the termination of their employment. This may include a prohibition on working for a competitor or starting a similar business on their own. The purpose of a non-compete clause is to protect legitimate business interests, such as confidential information, the customer base, and competitive position. A non-solicitation clause is a type of non-compete clause.