What is Non-Solicitation?
Non-solication has a number of meanings as a legal term. The meaning depends more on the context. In the context of business transactions, it is a provision in a contract that prohibits one party from soliciting the employees or customers of another party during a specified period of time.
In the legal agreements, non-solicitation of employees and non-solicitation of customers can be drafted as separate provisions. It is very important to include the time of the restriction and the methods that are prohibited. Defining communication unambiguously is crucial here. Example of the wording in relation to communication:
“Communications include, but are not limited to, email, regular mail, express mail, telephone, fax, SMS, instant message, or social media, including but not limited to Facebook, LinkedIn, Instagram, Snapchat or Twitter, or any other social media platform, whether or not in existence at the time of entering into this agreement.”
In the context of employment agreements and shareholders’ agreements, non-solicitation is a covenant that prohibits an employee from approaching the employer’s other employees, clients, customers, vendors, or business partners, in an attempt to hire, retain, or create contractual relationships with them.
A non-solicitation agreement is an agreement that restricts a firm from recruiting or hiring a competitor’s employees. This type of agreement is more common in industries where there is a strong demand among competitors for employees with advanced training or highly specialized skills.