Pre-placement agreement: What it is and why you need one

A pre-placement agreement, also known as a pre-employment agreement, is a legal contract between an employer and a potential employee. The agreement outlines the terms and conditions of employment before the employee starts working. These agreements may include confidentiality and non-disclosure agreements, non-compete clauses, intellectual property agreements, and more.

Pre-placement agreements have become increasingly common in recent years, especially in industries where intellectual property and trade secrets are highly valued. Employers use these agreements to protect their business interests and prevent employees from taking sensitive information to competitors. However, pre-placement agreements can also offer benefits to employees.

Advantages for Employers

Pre-placement agreements offer several benefits for employers. Here are some key advantages:

1. Protect intellectual property: Pre-placement agreements can prevent employees from disclosing or using confidential information about the company`s intellectual property or trade secrets. This includes customer lists, patents, trademarks, and other sensitive information that could give competitors an advantage.

2. Non-compete clauses: Employers can use pre-placement agreements to prevent employees from leaving the company and immediately joining a competing business. Non-compete clauses stipulate that employees cannot work for a competing company for a specific period after leaving their current job.

3. Consistent expectations: Pre-placement agreements can ensure that new hires understand what is expected of them. Employers can lay out the terms and conditions of employment, including salary, benefits, job duties, and more. This can prevent misunderstandings and disputes that may arise later.

Advantages for Employees

Pre-placement agreements can also offer benefits for employees. Here are some key advantages:

1. Job security: Pre-placement agreements can provide job security by outlining the terms and conditions of employment before the employee starts working. This can prevent unexpected changes in job duties, pay, or benefits.

2. Clear expectations: Pre-placement agreements can provide a clear understanding of what is expected of employees. This can help new hires succeed in their jobs and prevent misunderstandings that may lead to termination.

3. Protection of personal information: Pre-placement agreements may include confidentiality clauses that protect employees` personal information. This can prevent sensitive information from being disclosed to third parties.

In conclusion, pre-placement agreements can offer many benefits to both employers and employees. These agreements can protect intellectual property, prevent disputes, and provide job security. However, it is essential to ensure that pre-placement agreements are legally enforceable and do not violate any employment laws. If you are considering using pre-placement agreements, it is recommended to consult with legal counsel to ensure that they meet your needs and are enforceable in your jurisdiction.