Multiplier Logo
Loading Animation Image

Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

Search Icon
# A B C D E F G H I J L M N O P R S T U V W X Y Z

Non-Compete Clause

What does non-compete clause refer to?

A non-compete clause is placed into a contract to prevent employees, independent contractors, or partners from competing with a former employer. This means they can’t engage in similar business activities and often they can’t work with a competitor of the previous company for a certain amount of time.

Non-compete clauses are commonly used by employers to protect their business interests and client relationships. For this reason, they’re particularly common in industries where employees have access to sensitive information such as technology, finance, and sales. By restricting individuals from immediately starting to offer the same services or products, employers aim to safeguard the confidential information and trade secrets they’ve shared.

Depending on the severity of the case, the circumstances involved, and the location of the company, breaches can result in legal consequences such as fines. However, to ensure that they are enforceable,m companies must draft non-compete clauses carefully. In many cases, they are deemed unreasonable and dismissed.

Ready to take the leap? Choose Multiplier as your EOR partner

Gain fresh perspectives

Take a look at our new blogs and e-books


Choosing the Right HR Document Management Software for Your Business

Read more

Mp More Link Arrow Right

How to Master Payroll Reports: A Guide to Streamlining Financial Insights and Compliance

Read more

Mp More Link Arrow Right

From Rockies to Office: How to Hire the Best Talent from Canada

Read more

Mp More Link Arrow Right
Footer 24x5 New Img2x

An all-in-one international employment platform