A non-compete agreement is a contract in which an employee promises not to enter into any kind of competition with an employer after the employment period is over. These agreements also prohibit the employee from revealing proprietary information or secrets to any other parties during or after employment.Most contracts specify a certain length of time during which the employee is prohibited from working with any competitor after he or she ends employment with the employer. Employers may require employees to sign non-compete agreements to maintain their position in the market. Those required to sign these agreements may include employees, contractors, and consultants. Non-compete agreements are signed when the relationship between employer and employee commences. They give the employer control over certain actions of the former employee, even after that relationship ends.

These agreements have specific clauses stating that the employee will not work for a competitor after his or her employment is over, regardless of whether the employee is terminated or resigns. Employees are also prevented from working for a competitor. Some of the terms of the contract may include the length of time the employee is bound to the non-compete agreement, the geographic location, and/or market. These agreements may also be called a "covenant not to compete" or a "restrictive covenant." Non-compete agreements are commonly used in the media and related fields. Non-competes are also common in the information technology (IT) sector. In IT sector employees are often charged with proprietary information that may be deemed valuable to a company. Other places where these agreements are found include the financial industry, the corporate world, and manufacturing.