Employers will often include non-compete, non-solicitation, and confidentiality clauses in their Employment Contracts. These clauses serve to protect the employer from many different circumstances that could otherwise cause the company to lose business, employees, and trade secrets.
Non-Compete (or Non-Competition): A non-compete clause keeps the employee from working for direct competitors of the business during and after their work relationship has ended. Non-compete clauses generally last for a certain amount of time post-termination, and must meet certain requirements to be enforced, such as being limited to a reasonable geographic location.
Non-Solicitation: A non-solicitation clause keeps the employee from encouraging other employees or customers/clients of the employer to move to another company or service provider. These clauses must also meet certain restrictions to be considered valid, and generally last for a predetermined amount of time (such as 2 or 3 years from the end of the employment relationship).
Confidentiality: A confidentiality clause keeps confidential work information private. It bars the employee (or former employee) from discussing or using company secrets, marketing plans, and product information without the express permission of the company.
Confidentiality clauses can either last indefinitely (until the information enters the public domain through a third party), or have an expiration date (for example, 2 years after the contract ends).
Any clause that you include in your Employment Contract must be fair and reasonable to both parties, as well as legal, to be considered enforceable in a court of law.