Legal Term
non-solicitation of employees in business sale
Legal Definition
A contractual provision in a business sale agreement where the seller agrees not to solicit, hire, or induce employees of the purchased business to terminate their employment with the buyer for a specified period following the closing of the sale, to protect the buyer's investment in the workforce.
In Plain English
A rule in a business sale contract that stops the seller from trying to hire away the new owner's workers for a set time after the sale.
Example in a Contract
Seller shall not, for a period of twenty-four (24) months following the Closing Date, directly or indirectly, solicit, hire, or induce any employee of the Purchased Business to leave their employment with Purchaser or to become employed by Seller or any of its affiliates.
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