When working with subcontractors, it is important to establish clear boundaries and expectations to protect your business. One way to do this is through a non-solicitation agreement.
A non-solicitation agreement prohibits a subcontractor from soliciting or attempting to solicit your clients or employees for a set period of time after the end of the project. This protects your business from losing clients and valuable employees to the subcontractor.
When drafting a non-solicitation agreement, it is important to ensure that it is enforceable and does not violate any anti-trust laws. The agreement should be clear and specific about what actions are prohibited and for how long. It should also include consequences for violating the agreement.
It is important to note that a non-solicitation agreement is different from a non-compete agreement. A non-compete agreement prohibits a subcontractor from working for competitors or starting a competing business for a set period of time. However, non-compete agreements are often harder to enforce and can be seen as too restrictive.
Overall, a non-solicitation agreement can be a valuable tool for protecting your business when working with subcontractors. By establishing clear boundaries and expectations, you can ensure that your clients and employees are not poached by the subcontractor, and your business can continue to grow and thrive.
