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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 globe’s 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.
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Companies compete with each other to acquire more customers to help them grow their income capacity. It is the interest of any company to compete for the fairy to one another; hence, it uses non-compete agreements to achieve this objective. A company’s interest in using non-competes agreements among the employees is to restrict them to their current jobs. Every company wishes to compete with other businesses. One strategy needed to achieve this is to prevent their employees from moving to the other business partners to look for new positions. The company is interested in maintaining the market position, and one way to achieve this is to apply the non-compete covenants in the employment terms with the employees.
In evaluating the company’s interests concerning the commitments and ethical framework, it is unethical for the firms to apply the non-compete covenants. The reason is that it limits the employees’ interests in that the employees will not be able to leave the various positions they have in the firm. Therefore, the workers’ rights are undermined if this type of agreement is initiated in a company.
The enforcement of noncompetes is quite harmful to society since it undermines many employees’ interests from the community. Again, it is said that these covenants imposed by the companies on employments terms are contrary to the public policy. The reason is that these covenants prohibit the employees’ choices to work in other competing firms.
Since the non-compete agreements violate the employees’ rights to choose where to work, they should not enforce it (Miller, 2018). The court system in the United States should not allow these covenants to implement as it is contracted to the public policy. This type of agreement also violates the rights and freedoms of many workers in the United States. The interest of the society concerning the non –competes is that the workers should be granted the right to leave an individual company. The community expects the workers to work without any form of restrictions from their respective firms.
The society’s interests should balance with the company’s claims without any compromise to avoid conflicts between the employer and the employees. The court should not enforce the non-compete agreements in firms even after completing the internship period for the college credit since it is against the employees’ rights and freedoms (Torry, 2019). Again these agreements do not bind to the public policy in the United States.
Concerning the Sandwich makers in signing for the noncompete agreement, it is not ethical since it will not encourage many employees to give the best services that the firm deserves (Miller, 2018). The court should not enforce these contracts since it attracts trade restraints among the firms, such as unfair competitions. Again, imposing the noncompete agreements implies that there will be no freedom of expression among the employees while in the workplace.
References
Miller, R. L. (2018). Business Law: Text and Cases: The first course. Boston, MA: Cengage Learning.
Torry, H. (June 29, 2019). Interns’ job prospects constrained by noncompete agreements. Preview the documentWall Street Journal, retrieved from https://www.wsj.com/articles/interns-job-prospects-constrained-by-noncompete- agreements.
