In manufacturing and the automotive industry, there is a lot of competition. There are also a lot of jobs in Michigan in these sectors. Turnover is also not uncommon. So, it is very possible that an employee working for you today could turn around and be working for a competitor next week. That might pose some issues, especially since there are probably a lot of things about your business that you do not want the competition to know about. In such a case, you may want to consider a noncompetition agreement, which Business News Daily explains is a legal way to restrict employees from going to work for your competitor immediately after working for you.
This type of agreement generally will set a period in which your employee may not work for another company in your industry in your area. It is a great way to help prevent employees from working for you and gathering information about your company that they then can pass on to your competition.
These agreements can also help stop turnover. They give employees more incentive to stay with your company instead of leaving. This provides you with a more stable workforce and saves you money on training costs.
You can also include protection for any trade secrets or other confidential information as part of a noncompetition agreement. This is another way it can protect your business.
You will generally require an employee to sign the agreement when you hire him or her. Employment should be conditional upon signing the document. This information is for education and is not legal advice.
-
Facebook
-
Twitter
-
LinkedIn