Unlock the eSignature Legitimacy for Non-Solicitation Agreement in Australia

How to eSign a document: eSignature legitimacy for Non-Solicitation Agreement in Australia

foreign [Music] agreement is a contract between an employer and an employee that prevents the employee from taking the employer's customers upon leaving the company in this video we'll cover what a non-solicitation agreement is Clauses non-solicitation agreements should contain and the difference between a non-solicitation agreement and a non-compete agreement worry forms the world's largest database of fillable legal forms and our goal is to help you understand the complicated world of contracts and other documents you'll encounter throughout your life be sure to click the link at the end of this video so you can start filling out a non-solicitation agreement that you can customize to meet your needs so let's get into it what is the point of a non-solicitation agreement well put yourself in the position of an employer you spend a bunch of money and time training a new hire while that person is employed by your company they develop relationships with clients you already targeted marketed to and won over now say the employee leaves your company and starts their own company a block away you probably won't be happy if the new company takes all of your customers because of the relationships built during a period of employment with your company so this is why non-solicitation agreements exist sometimes they're Standalone contracts sometimes they appear as a clause in a broader employment contract but either way they limit a person from being able to acquire the former employers customers within a limited geographic area for a finite period of time so what should a non-solicitation agreement include it's important to note that laws and statutes differ in every state so check out our website to get familiar with the rules where you live and work in every state however there are some general Clauses that you'll want to include in a non-solicitation agreement first make sure you define the time period for which your agreement will be valid your State's laws will determine the maximum period an agreement is allowed to cover also State the geographic area for which the agreement is valid again the radius of this area will be determined by state law what's more is that every non-solicitation agreement should specify precisely which activities the employee is restricted from doing during the stated time and within the stated area now let's touch on the difference between a non-solicitation agreement and a non-compete agreement because people often confuse the two one which we've discussed restricts an employee from taking an employer's customers for a specific time and in a specific location the other the non-compete prevents the employee from taking a job with a competing employer for a specific time and in a specific area so what happens if you sign a non-solicitation agreement then violate it well first the other party can issue a cease and desist or a letter threatening a court-ordered injunction ultimately though you can be sued and forced to pay for damages and legal fees if you breach a non-solicitation agreement the only way to circumvent a non-solicitation agreement is to get a release form signed by the other party click the link below to start creating your own non-solicitation agreement don't forget to subscribe to our Channel as well for more videos that walk you through the confusing world of Law and legal forms [Music] foreign