As experts in relocation services, we know that non-solicitation clauses are essential for many companies to run their business. Many companies have a non-solicitation clause in place as soon as an employee is hired, and it will stay in place until employee termination or the company’s relocation.
A non solicitation clause legally protects a company from competitors or any other parties that can hurt the company. Many things can be covered in a non solicitation provision, and a company can create its mutual non solicitation clause on its terms.
Understanding the Non-Solicitation Clause
A non solicitation clause is a legally binding contract that prohibits any solicitation or negotiation of a party. Typically, non-solicitation clauses prevent several scenarios, like stopping competitors from taking employees or stopping employees from taking their company’s ideas and using them as their own.
Another everyday use for a non solicitation clause is to have a non solicitation agreement between two companies, where an employee agrees not to solicit a company’s clients or customers after leaving the company.
Employees normally sign a contract stating a non-solicitation clause when they begin their career with their new company, along with other paperwork and contractual agreements. However, this contract can be signed at any time throughout their employment with their company.
Non Solicitation Clause Examples
Many types of non-solicitation clauses can be used when signing a non-solicitation contract. Here are the most common non-solicitation clauses.
- During the term of (employee’s name) employment and during two years after employment is terminated, (employee’s name) will not indirectly or directly solicit to hire, hire, or engage with any individual who is engaged as a consultant, contractor, or is employed by (company’s name).
(Employees name) will not interfere with the relationship between (company name) and any person engaged as a consultant or contractor employed by (company name). (Employee’s name) will not solicit, divert, contact, or call upon customers of (company name) with the intent of doing business.
(Employee’s name) will not solicit a customer for a competing company and will not encourage a customer to discontinue business with (company’s name). (Employee’s name) will not interfere with the relationship between (company’s name) and any of their manufacturers, suppliers, service providers, or any other individual (company’s name) does business with.
- During the period of (employee’s name) employment on (effective date) and ending one year after the date of voluntary or involuntary termination, (company’s name) will not indirectly or directly solicit or encourage an individual to leave the company and work for a competitor without the advisor’s prior written consent.
(Employee’s name) shall not hire an individual on behalf of (company’s name) or any other person who has left their employment with (company’s name) following one year after (employee’s name) termination. During the one year after termination, (company’s name) will not intentionally interfere with the advisor’s relationship or its affiliates.
(Employee name) will not entice away from the advisor or the advisor’s affiliates during the one year period after termination. (Employee name) shall not solicit any co-investors, co-developers, tenants, joint, venturers, or any other advisor’s customers or the advisor’s affiliates.
It is important to note that non solicitation clauses can be long or short, depending on what is included in the clause. Some standard non-solicitation clauses that are short but to the point, include:
- During a one year term following (employee’s name) termination, (employee’s name) shall not solicit or encourage any employee, vendor, independent contractor, or client of (company’s name) to leave employment or terminate their relationship with (company’s name) for any reason.
- (Employee’s name) acknowledges the non-solicitation clause between (company’s name) and (employee’s name) beginning (date of employment) to termination. This non-solicitation clause is in full force and remains effective throughout (employee’s name) term of employment.
- Beginning the date of this clause, (effective date), (employee’s name) deliver and execute to (company’s name) its standard non-solicitation and non competition clause. (Employee’s name) has been given a copy of the non-solicitation clause, attached here.
Non Solicitation Clause Exceptions
While a non solicitation clause is a binding contract, there are a few exceptions to the clause. It is acceptable to exclude from the clause any new hires that resulted from general ad postings. This is only considered an exception to the clause if the ad does not target a specific employee directly or if the respondent just happens to work for the other company.
This exception to the non-solicitation clause is significant for large companies and organizations whose HR departments may not be aware of the non-solicitation provisions or vendor relationships.
Non Solicitation Clause – FAQs
Here are some frequently asked questions regarding non solicitation clauses.
How long do non-solicitation clauses last?
Non-solicitation clauses last however long the length of the contract is. However, depending on the agreement, the clause can extend long after the employee’s termination. Some clauses extend for one year following an employee’s termination.
Are there any ways to get around a non solicitation clause?
Yes, there are a couple of ways to get around a non solicitation clause. An employee can either renegotiate the terms of the clause or the employee can dispute the clause’s enforceability. Like the WARN Act helps protect employees, non solicitation clauses help safeguard companies.
What does it mean to solicit an employee?
In non solicitation clauses, soliciting an employee means to persuade or entice another person to work for a different company or attempt to terminate their employment in any other way. Another way to solicit an employee is to pressure them to share their company’s confidential information with another company.
Final Thoughts
Whether your company is preparing to relocate your employees or you are reviewing your non solicitation clause before relocating for work, ARC Relocation can help.
ARC Relocation can help make your company’s move less stressful and assist with various factors, like packing, shipping services, vehicle shipment, or even global relocation. For more information regarding your relocation, contact us today!