What is a non-compete agreement?

Non-compete agreement

A non-compete agreement is a legally binding contract that prohibits an employee,  independent contractor, or partner from competing with a company during the term of their contract and, typically, for a certain amount of time afterwards.

A non-compete agreement also usually prohibits them from working with competitors.

Who needs to sign a non-compete agreement?

Non-compete agreements are usually signed by both parties as a condition of their employment or partnership. These agreements are designed to protect the employer's business interests. They can also help to ensure that trade secrets and other confidential information are not shared with competitors.

Which party benefits the most from a non-compete agreement?

Non-compete agreements can be beneficial for both employers and employees, but it is important to make sure that they are fair and reasonable. Otherwise, they may be deemed unenforceable by a court.

Check out our guide to non-compete agreements for independent contractors to find out more.

Converting contractors to full-time employees

Hiring contractors may seem like a simple way to scale your team quickly. But if a contractor actually operates like an employee, your company could be exposed to various legal, financial, and operational risks.

Not to worry. Oyster’s contractor conversion solution can help you assess your risks in different countries, weigh the costs and benefits of both employment models, and compliantly transition contractors to full-time employment.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.