A covenant not to compete is a term applied by the majority of the companies in employment contracts. Some other times, this term is also called a non-compete agreement. In this covenant type, the upper and middle-level management positions agree not to provide service to other competitors. Again, they decide not to begin competing firms for a particular time frame after completing the employment. In most of the globes countries, non-compete agreements are made legal, bearing in mind that geography restrictions are reasonable. The main aim of imposing a non-compete contract is to prevent or discourage the employees from abandoning any position with a specific employer and granting any place with a competing business partner.
