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Home/Templates/NDAs, confidentiality & IP/Non-compete agreement
Signable template

Non-compete agreement

Restricts competitive activity for a defined period, territory, and business scope after an engagement ends. Heavily jurisdiction-dependent β€” confirm it is enforceable where you operate before sending it.

  • Made forEmployers
  • Reading time~2 min
  • What's includedFillable fields, signature blocks, and e-signature delivery through Diiirect.
Use this templateSign in or create a free account to customize and send for e-signature.

The template

This agreement limits competitive activity after an engagement ends, in exchange for stated consideration. It is intentionally narrow: the restriction only applies to the defined business scope, territory, and period, and it works alongside β€” not instead of β€” confidentiality and non-solicitation obligations.

1. Parties

This agreement is between Company name (the "Company") and Covenantor full name (the "Covenantor"), engaged as Engagement role or title. It takes effect on Effective date.

2. Protected interests and consideration

  1. Through the engagement, the Covenantor gains access to the Company's confidential information, client relationships, and strategic plans. The parties agree the restriction below is intended only to protect those legitimate interests.
  2. In exchange for this restriction, the Covenantor receives the consideration described here: Consideration description. Where applicable law requires payment during the restricted period, that payment is described here: Restricted period compensation.

3. The restriction

  1. During the engagement and for Restricted period after it ends (the "restricted period"), the Covenantor will not, within the territory defined below, directly or indirectly perform services that are the same as or substantially similar to the services the Covenantor performed for the Company, for a business that competes with the restricted business.
  2. "Restricted business" means the specific business activity of the Company described here: Restricted business description.
  3. "Territory" means: Restricted territory.
  4. Acting "indirectly" includes acting as an employee, contractor, founder, officer, partner, or consultant of a competing business, where the Covenantor's role involves the restricted activity.

4. What is not restricted

  1. Holding a passive investment of a small, non-controlling stake in a publicly traded company.
  2. Working for a competitor in a role that does not involve the restricted business, or in a division that does not compete with the Company.
  3. Using the Covenantor's general skills, knowledge, and experience in any non-competing work.
  4. Any activity after the restricted period ends, subject to continuing confidentiality obligations.

5. Notice of new engagements

During the restricted period, the Covenantor will inform the Company in writing before starting a role that could reasonably fall within the restriction, giving the Company an opportunity to confirm whether it objects. The Covenantor may show this agreement to a prospective employer.

6. Remedies

  1. A breach may cause harm that money alone cannot adequately remedy; the Company may seek injunctive or other equitable relief, in addition to damages and any other available remedy.
  2. Where the law permits, the restricted period is extended by any period during which the Covenantor is in breach.

7. Severability and reformation

  1. If a court finds the restriction too broad in scope, territory, or duration, the parties intend that it be reformed to the maximum enforceable extent rather than voided, and that the rest of this agreement remain in effect.
  2. If applicable law makes this type of restriction unenforceable for the Covenantor's role or location, the remaining agreements between the parties β€” including confidentiality and non-solicitation obligations β€” are unaffected.

8. General

  1. This agreement supplements the engagement agreement and any confidentiality or non-solicitation agreement between the parties.
  2. It benefits the Company's successors and permitted assigns; the Covenantor may not assign it.
  3. Amendments must be in writing and signed by both parties.

Signatures

Covenantor: ✍ Covenantor signature Date: Covenantor signature date

For the Company: ✍ Company signature Date: Company signature date

Highlighted fields are filled in when you customize and send this document on Diiirect.

Jurisdiction note

Several jurisdictions restrict or void non-compete covenants entirely, and others impose strict limits on duration, territory, compensation, or eligible roles. Do not use this template without local counsel confirming it is enforceable where the worker is located.

Not legal advice

This template is provided for general informational purposes only and is not legal advice. Laws differ by jurisdiction and change over time β€” have a qualified professional review any document before you rely on it.

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