A non-solicitation agreement is a legal contract that restricts employees from soliciting clients or customers of their former employer. It can also prevent employees from recruiting former colleagues to join them in a new job or business venture. However, for a non-solicitation agreement to be enforceable, it must have “consideration.”
Consideration is a legal term that refers to something of value that is exchanged between two parties in a contract. In the case of a non-solicitation agreement, the consideration is the employment or continuation of employment. If an employee signs a non-solicitation agreement when they start a new job, the consideration is the actual job.
Consideration is important because it makes the agreement legally binding. Without consideration, the agreement is not enforceable. Therefore, an employer must offer the employee something of value in exchange for signing the agreement.
What can be considered as consideration?
The consideration can be anything that is of value to the employee. Examples include:
– A job offer
– A promotion
– A raise
– A bonus
– Continued employment
The employer must offer the consideration at the time the non-solicitation agreement is signed; otherwise, the agreement may not be enforceable.
What happens if an employee violates a non-solicitation agreement?
If an employee violates a non-solicitation agreement, the former employer can sue for damages. These damages can include lost profits, damage to reputation, and legal fees. However, the employer must prove that the employee violated the agreement and that the violation caused damages.
A non-solicitation agreement is a useful tool for employers to protect their business interests. However, for the agreement to be enforceable, it must have consideration. The consideration is the exchange of something of value between the employer and the employee. Without consideration, the agreement is not legally binding, and the employer cannot enforce it.