A non-compete agreement, also known as a non-competition agreement or a restrictive covenant, is a legally binding contract between an employer and an employee that restricts the employee from engaging in certain activities that may compete with the employer’s business during or after their employment. This agreement is typically used to protect the employer’s trade secrets, confidential information, and client relationships. It may also prevent the employee from working for a competitor or starting a competing business for a specified period of time and within a specific geographical area. Non-compete agreements are often included as a clause in employment contracts and may also be signed as a separate agreement. They are designed to safeguard the employer’s interests and can help maintain a competitive advantage in the market. However, they must be reasonable in terms of duration, scope, and geographic limitations to be enforceable. Non-compete agreements are commonly used in industries where employees have access to sensitive information or have specialized skills that could be used to benefit a competitor. Violation of a non-compete agreement can result in legal consequences, such as monetary damages or an injunction preventing the employee from engaging in prohibited activities.