Free Non-Compete Agreement Template

A non-compete agreement is a contract in which one party agrees not to compete with another for a defined period, within a defined area, after their relationship ends.

Employers use them with employees, buyers use them with the sellers of a business, and companies use them with contractors and partners. The purpose is to stop someone taking specific advantages of a relationship straight to a competitor.

They are among the most heavily contested documents in employment law. Courts in many places scrutinise them closely, and a clause that is too broad is frequently narrowed or struck out entirely.

That contested status is the single most important thing to understand before using one, and it is why this page repeatedly points to advice rather than offering rules.

This is the part to take seriously, and there is no way to answer it in a template.

Whether a non-compete agreement is enforceable at all depends on where you are. Some jurisdictions restrict them heavily, some prohibit them for certain workers or below certain earnings, and some will not enforce them against employees at all. Others permit them within limits that courts assess case by case.

The law here is also actively moving. Restrictions on non-competes have been the subject of legislation, regulation, and litigation in several jurisdictions in recent years, and the position can change between when an agreement is signed and when someone tries to rely on it.

Because of that, this page states no rule about enforceability, no permitted duration, no geographic limit, and no earnings threshold for any jurisdiction. Publishing such figures responsibly is not possible in a general template.

Before you draft, sign, or attempt to enforce a non-compete agreement, take advice from an employment lawyer in the relevant jurisdiction. This applies to employers and to individuals being asked to sign, and it applies particularly if you are relying on an agreement signed years ago.

Subject to what is permitted where you are, these agreements generally address the same points.

The Parties

The company and the individual or business restricted, with full legal names.

The Restricted Activity

What the person may not do, described specifically rather than as competition in general.

Geographic Scope

Where the restriction applies, defined in a way that reflects where the business actually operates.

Duration

How long the restriction lasts after the relationship ends.

Consideration

What the restricted party receives in return, which in some places must be something more than continued employment.

Definition of Competitor

Which businesses are covered, ideally by describing the activity rather than listing names.

Carve-Outs

Roles, sectors, or activities expressly permitted.

Severability

What happens if part of the clause is found unenforceable.

Governing Law and Signatures

Which law applies, plus signature blocks and dates.

The instinct to draft widely is exactly what causes these clauses to fail.

Limit the activity to what genuinely needs protecting. A restriction aimed at a specific role, product line, or customer group is far more defensible than one preventing someone working anywhere in an industry.

Keep the geography connected to reality. An area matching where the business actually competes is arguable; a nationwide or worldwide restriction for a locally trading business generally is not.

Choose a duration you could justify to a court. The right period relates to how long the protected information stays valuable, and longer is not safer.

Consider whether you need a non-compete at all. Confidentiality clauses, non-solicitation of customers, and non-solicitation of staff are narrower tools that address most concerns with far less legal risk, and in some places they are permitted where a non-compete is not.

Tip: Ask what specific harm you are trying to prevent. If the honest answer is that you do not want a good employee leaving, a non-compete is the wrong instrument and will probably not survive scrutiny.

Being handed a non-compete agreement deserves proper attention rather than a quick signature.

Read what it actually restricts. The activity, the area, and the duration together determine whether you could realistically work in your field afterwards.

Ask when it was introduced. Being asked to sign partway through an employment relationship raises different questions from signing at the outset, and in some places that timing affects validity.

Negotiate before signing. Narrowing the scope, shortening the term, or adding a carve-out is far easier at the offer stage than later, and employers frequently accept reasonable amendments.

Do not assume it is unenforceable, and do not assume it is enforceable either. Both assumptions cause real harm. If you have signed one and are considering a move, take advice on your specific agreement before you resign or accept another offer.

Keep a copy. People are regularly asked years later to comply with a document they no longer hold.

A non-compete agreement should be drafted narrowly and reviewed before use. Document Genius walks you through each section with simple questions.

1. Take Advice First

Confirm with an employment lawyer whether a non-compete is permitted and enforceable in your jurisdiction and for this role.

2. Identify What Needs Protecting

Name the specific interest rather than competition generally.

3. Draft the Restriction Narrowly

Activity, geography, and duration, each limited to what you can justify.

4. Address Consideration

Be clear about what the restricted party receives in exchange.

5. Consider Narrower Alternatives

Confidentiality and non-solicitation may achieve what you need.

6. Have It Reviewed, Then Sign

Do not use a standard form across jurisdictions without review. Start yours now and have a draft ready for your lawyer.

Several limits apply regardless of drafting.

It cannot stop someone using their general skills and experience. What a person learns and becomes good at is theirs, and no agreement changes that.

It cannot protect information that is not actually confidential. Publicly available knowledge and industry-standard practice are not protectable interests.

It cannot survive being unreasonable. Where a restriction goes beyond what is permitted, courts in some places will narrow it and in others will strike it out entirely, leaving the employer with nothing.

It cannot prevent lawful reporting. Nothing in a restrictive covenant stops someone reporting unlawful conduct to a regulator or law enforcement.

It is not a substitute for good retention. The most reliable protection against a departing employee is a relationship they do not want to leave.

Nothing on this page is legal advice, and no rule on enforceability, permitted duration, geographic scope, earnings threshold, or consideration is stated anywhere on it. Take advice from an employment lawyer in the relevant jurisdiction before drafting, signing, or enforcing one.