Non-disclosure and non-solicitation agreements: what you need to know

 In Small Business Legal Help

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You work hard to get customers – and you should be able to keep them. However, there are times a small business owner might worry about whether an employee will try to “steal” customers or otherwise undermine their business. This is where non-disclosure and non-solicitation agreements can help.

Non-disclosure agreements

A non-disclosure agreement is usually made between a person (in this case, probably you) who has a secret of some kind, and someone (like your employee) to whom you reveal that secret. In a non-disclosure agreement, the employee typically promises not to reveal the secret, or they’re in breach of contract. You may need such an agreement if revealing trade secrets to employees is necessary for them to do their jobs.

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Non-solicitation agreements

On the other hand, non-solicitation agreements are generally for preventing employees from soliciting their former employer’s clients. However, the employees are allowed to begin work right away, and even in the same area as their former employer.

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