A non-competition clause is a contract in which a worker undertakes to cease opposing the employer after the termination of the employment relationship. Employers appreciate competition bans because they prevent competitors from benefiting from the training, knowledge and connections of an outgoing employee. The signing of a non-compete clause can strongly affect an employee`s ability to find a new job when they are fired or resign. The main consideration that the company expects from severance pay is a general release by the employee from all claims that the employee may have against the company, whether known or unknown. This press language will be quite long and will attempt to cover all liabilities, claims, promises, remedies, under the law or equity against the company and its officers, directors, shareholders, employees, subsidiaries, parent companies, related companies, successors and beneficiaries of the assignment. The publication often sets out a number of specific potential claims, including rights related to age discrimination, discrimination based on disability, violations of civil rights legislation, violations of the Family and Sick Leave Act, rights to unlawful dismissal and any other. The goal of the company is to be discharged of any responsibility towards the employee. Therefore, once the employee has signed the severance pay agreement, various rights are permanently waived. If you are asked to sign a severance pay agreement, it usually indicates that you and your former employer are not leaving in good conditions. For example, if your employer discriminates in the workplace, they may ask you to leave and remain silent in exchange for significant benefits. Whatever the reason, your former employer may be asked later to explain what drove you to leave. If this answer puts you in a bad light, you may find it difficult to find a future job. There are certain professions where non-competition agreements are commonplace.
If the sale of a business involves the termination of the previous owner, it will likely have a non-compete clause in its severance package. Technology companies, biotech companies, retailers, start-ups and other companies whose intellectual property is very valuable and trade secrets usually contain non-compete clauses in their severance pay agreements, as do most contracts for senior executives and other business leaders of all kinds. . . .