What Is the Main Purpose of Non-Solicitation Agreements?

Employees inside an organization change from time to time, and it is necessary to make sure that no employees go to another organization and share our data with them. This can easily lead to the loss of clients. The primary purpose of Non-Solicitation Agreements is to make sure that no former employee leaks any customer-related data or poaches any clients from their ex-organization to the new one. 

If an employee tries to poach previous clients, he can be sued by the organization he used to work for. Non-Solicitation agreements can also be a clause in the employment contract of an employee. The employees cannot use the company’s data for their gain or, in many cases, to take revenge on their previous employer. To get professional help, consult the Charlotte non-competition agreement lawyer.

What Are The Important Terms Related To Non-Solicitation Agreements? 

It is very important to have a proper draft of a non-solicitation agreement. Even small mistakes can cause you a lot and many legal rights can be violated if the agreement is not drafted correctly. It is essential for all the parties to be involved and fully understand the contract they are signing. This is only possible when they familiarize themselves with all the key terms present in the agreement, and all points are included in it. The terms of the contract need to be specific to the industry and geographical area you are working in. It is very important to make sure that all the parties are aware of the legal implications the contract brings.

Some terms are essential in a non-solicitation agreement, and it is very important to make sure that these points are not skipped. The contract introduction should have the names, addresses, and other necessary details of the parties involved. The date of signing should be mentioned on the agreement. A Non-solicitation agreement will always last for a specific amount of time. The period could be in months or years, but it should be mentioned in the agreement. There are a lot of other terms, like the covered employees or the exclusions, that need to be mentioned on a well-drafted non-solicitation agreement. 

Is Non-compete Same As The Non-Solicitation Agreement? 

A non-compete agreement is more restrictive than a non-solicitation agreement. A non-compete agreement says that no ex-employees can enter the same field as their current employee. But a Non-solicitation agreement says that employees cannot poach any clients of their former company. 

If Mercedes hired Max in the sales department, the non-compete agreement would be preventing Max from joining any other car company like BMW or Jaguar. On the other hand, a non-solicitation agreement states that even if the employee enters a rival company or starts something of his own, they cannot use the data like the customer list for their gain. 


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