It’s essential to protect your company’s important information, data, procedures, and ideas, so it’s necessary to take any necessary precautions. At the same time, it’s sometimes unnecessary to take too many precautions, so there’s no need to become oversuspicious. Starting a development process with the development company can be no different from adding developers to your own team. In this case, a Non-Compete Agreement can be a great solution as it brings a lot of benefits to the development process, but it’s up to you to decide whether you’ll sign one with your development company.
Is Non-Compete Agreement for Developers allowed in your area?
At first, you’ll have to check whether your local laws allow Non-Compete Agreement for Developers companies. For example, states like California, North Dakota, and Montana banned non-compete agreements. If a non-compete agreement for developers is allowed in your country/state, you’ll want to start looking at the pros and cons of having your software development company sign one. In order to do this, you’ll want to look at it from both sides — the company’s perspective and the developer’s perspective.
Will your company benefit from a non-compete agreement for developers?
Most likely, the short answer is yes. The company will benefit from having a developer sign a non-compete agreement for developers. However, it can also cause some downfalls if not done properly. Let’s take a look at three main advantages of a non-compete agreement for developers for your company:
- Secrets and confidential information won’t get leaked or used against you when the job is done.
- Development companies won’t have the chance of stealing your customers once they stop working with you.
- A non-compete agreement for developers might give your developers a reason to be in a good relationship with you for a long amount of time
There are also some negatives to a non-compete agreement for developers for the company. Let’s take a look:
- If you’ll introduce the agreement after the development company has already started to work, it could make them rethink working with you
- The company will have the risk of facing legal issues down the road if the agreement isn’t honored
- Developers might choose other projects over yours if they have offers without a need to sign a non-compete agreement for developers
The company will have to consider these pros and cons to make the right decision. If you’re willing to risk having fewer developers to choose from, in return for more confidentiality, then you’ll want to consider introducing the Non-Compete Agreement for Development.
Will the development company benefit from a non-compete agreement for developers?
Ensuring the company is getting what it needs out of the agreement is essential, developer’s needs and should also be considered.
Let’s take a look at some of the reasons developers will appreciate a non-compete agreement for developers:
- The developer knows that by signing one, they are showing the company that they’re invested in their project and ready to work
- The developer will have an opportunity to negotiate the agreement
Next, we’ll look at some of the cons:
- Some developers will elect to have their lawyer read the agreement before signing, which will cost them extra money
- This could cause them a delay in finding work in a similar industry, once the job is complete
The developer will certainly have some advantages and some disadvantages when signing a non-compete agreement for developers.
What if I decide to introduce a non-compete agreement for developers to software developers?
If you end up deciding your company will require a non-compete to be signed, we have a template for you.
There is a lot to consider, but it’s certain that your company can benefit from a non-compete agreement for developers. Just remember that it will cause limitations when hiring and retaining developers to work on your project.
