The extent to which non-compete agreement impede development

Abstract

The use of non-compete agreements has faced some criticism. Research has shown that non- compete agreements block employees from freely switching jobs. This may suppress wages and deprive them of better working opportunities. They further result in the lack of mobility and competition, which may reduce bargaining power for employees, consequently leading to lower wages. As a result, development is hindered. This study aims to determine the extent to which non- compete agreements impede development. The study has predominantly relied on secondary data through the desk study method of data collection and the information has come from sources such as journal articles, books, case studies, international instruments and reports. The results indicate that non-compete agreements impede development. On this basis, it is recommended that employers and employees use alternatives to non-compete agreements as they are less restrictive to employee’s career growt