What is competition clause in SAP LOD-SF-EC - Employee Central?

SAP Term: competition clause

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: An agreement restricting an employee who leaves the enterprise from acquiring employment with a competitor active in the same industry. The agreement can be of limited duration.

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• Key Concepts: 
  A competition clause is a type of employment contract clause that is used to protect an employer from an employee leaving the company and taking their knowledge and skills to a competitor. It is a legally binding agreement that prevents an employee from working for a competitor or starting their own business in the same industry for a certain period of time after leaving the company. 
  
  How to use it: 
  In SAP Employee Central, competition clauses can be used to protect the employer’s interests. The clause can be added to an employee’s contract when they are hired, or it can be added later if the employer wishes to protect their interests further. The clause should be clearly stated in the contract and should include details such as the length of time the employee is prohibited from working for a competitor, and any other restrictions that may apply. 
  
  Tips & Tricks: 
  When adding a competition clause to an employee’s contract, it is important to ensure that it is legally binding and enforceable. It is also important to ensure that the clause does not restrict the employee’s ability to find other employment outside of the industry or start their own business. 
  
  Related Information: 
  Competition clauses are just one of many types of clauses that can be included in an employment contract. Other common clauses include non-disclosure agreements, non-compete agreements, and confidentiality clauses. It is important to understand the implications of each type of clause before including them in an employment contract.