What is a non-compete agreement?
Non-compete agreement
A non-compete agreement is a legally binding contract that prohibits an employee, independent contractor, or partner from competing with a company during the term of their contract and, typically, for a certain amount of time afterwards.
A non-compete agreement also usually prohibits them from working with competitors.
Who needs to sign a non-compete agreement?
Non-compete agreements are usually signed by both parties as a condition of their employment or partnership. These agreements are designed to protect the employer's business interests. They can also help to ensure that trade secrets and other confidential information are not shared with competitors.
Which party benefits the most from a non-compete agreement?
Non-compete agreements can be beneficial for both employers and employees, but it is important to make sure that they are fair and reasonable. Otherwise, they may be deemed unenforceable by a court.
Check out our guide to non-compete agreements for independent contractors to find out more.
Converting contractors to full-time employees
Hiring contractors may seem like a simple way to scale your team quickly. But if a contractor actually operates like an employee, your company could be exposed to various legal, financial, and operational risks.
Not to worry. Oyster’s contractor conversion solution can help you assess your risks in different countries, weigh the costs and benefits of both employment models, and compliantly transition contractors to full-time employment.
FAQ’s
What is an EOR?
An employer of record (EOR) is an entity that legally employs workers on behalf of another business. An EOR takes full responsibility for all aspects of employment, including compliance, payroll, taxes, and benefits.
Is it hard to switch from another EOR provider?
Switching from one employer of record partner to another can be seamless with the right planning and support. Oyster offers a dedicated team of specialists who guide you through the process compliantly, while keeping your team members’ experience at the center.
What is an EOR in payroll?
An employer of record is an entity that employs workers on behalf of another business. An EOR partner takes on the responsibility of many HR services, including payroll administration. When you work with an EOR partner to employ global talent, you provide funds to the EOR and they will handle salary disbursement, ensuring proper tax withholding, social security contributions, and retirement account funding.
What’s the difference between an EOR and a PEO?
An employer of record (EOR) directly employs workers on behalf of another company, while a professional employer organization (PEO) co-employs workers with the employer. Professional employer organizations manage specific HR tasks like payroll, taxes, and employee benefits, while the employer retains control over day-to-day operations and employee management. With PEO services, the employer shares liability with its professional employer organization partner. In contrast, an EOR assumes full liability for compliance with labor laws, payroll, taxes, and benefits management.
Is using an employer of record (EOR) legal?
Using an employer of record (EOR) is legal, and helps businesses manage distributed teams without setting up local entities which can be costly and time-consuming.
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About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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