Free Printable Non-Compete Agreement Templates (Word / PDF)


A non-compete agreement template is a formal agreement between an employee and employer that states the employee will not work for a competing business organization in the same industry when they leave the company.

What is a non-compete agreement?

Employers use a non-compete agreement to make sure that their employees will not engage in business activities that are in competition with their primary job. This agreement is designed to protect business relationships and the intellectual property of the company.


Furthermore, the main purpose of a non-compete agreement is to prohibit the employees from taking up employment with competitors. Also, the employee isn’t allowed to use confidential information of a company to obtain a competitive advantage that may diminish the company’s share in the market.

The alternate names of a non-compete agreement are;

  • Non-Solicitation Agreement
  • Non-Compete Contract
  • Non-Compete Policy
  • Non-Solicitation Policy
  • Non-Disclosure Agreement

When should you use a non-compete agreement?

You should use this agreement in the following scenarios;

When hiring employees

Companies must include a non-compete agreement in their employment contracts if the use of confidential information is important to their success. Along with the employees, the freelancers and vendors should also sign this agreement as they may also get access to sensitive information when liaising with companies.

When purchasing a company

Business owners are experts in their respective fields. Thus, when buying a company, ask the previous owners to sign an agreement to avoid competition. This prohibits the use of their industry knowledge to compete in that market again.

When partnerships go separate ways

A non-compete agreement must come into handy when either of the partners in a business project is going to separate their way. This way, the parting partner can’t become a new competitor in the industry.

What should be included in a non-compete agreement?

Include the following elements in a non-compete agreement;


Specify in the non-compete agreement the industry it addresses, the type of positions, and any specific competitors that may be relevant.

Geographic area


The employers must be specific about the geographical area that they involve in the agreements. A court will declare an agreement invalid if it claims to cover too wide an area.

Area of expertise

Employees are the valuable assets of their companies and their skills and expertise are the reasons for their hiring in the first place. However, some specific knowledge will be required while assigning them new duties within the company.


Employees must be offered something of value in exchange for signing non-compete agreements. You may offer them benefits or an agreed sum.


Assignment provision

Include a clause in the agreement that states what happens in case of selling the company. In most cases, it is recommended that the employee would still stick with the agreement.

How do you get out of a non-compete agreement?

You can get out of a non-compete agreement in the following ways;

  • Both parties should sign a release of liability form to get out of this agreement. This is the most straightforward method in which both parties agree to drop any legal claims and lawsuits relevant to the agreement.
  • Another way is to prove in the court that there are unreasonable clauses in the non-compete agreement like geographical distance, etc.

Business Non-Compete Agreement Template

business non compete agreement template
File Format
Word (doc, docx)
Size: (78 KB)

Free Non-Compete Agreement Template

free non compete agreement template
File Format
Word (doc, docx)
Size: (301 KB)

Non-Disclosure and Non-Compete Agreement Template

non disclosure and non compete agreement template
File Format
Size: (324 KB)


If you violate a non-compete agreement then what happens?

A violation of a non-compete agreement may lead to;

1- Lawsuit
2- Injunction
3- The payment of punitive damages

Is a non-compete agreement enforceable?

Yes, a non-compete agreement is an enforceable legal document. It bounds the parties to its terms and conditions. It would be recommended to check your state laws as some states do not recognize non-compete agreements.

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