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Employee Covenant Agreement for Nigeria

Employee Covenant Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that establishes protective covenants between an employer and employee. The document outlines restrictions and obligations regarding confidential information, non-competition, non-solicitation, and intellectual property rights. It includes specific provisions compliant with Nigerian labor laws, particularly the Labour Act and Trade Secrets Act 2020, ensuring enforceability while protecting legitimate business interests. The agreement typically contains detailed schedules specifying restricted activities, geographical limitations, and confidentiality requirements.

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What is a Employee Covenant Agreement?

The Employee Covenant Agreement is a crucial document used in Nigerian business environments to protect company interests when engaging employees who will have access to sensitive information or key business relationships. It becomes particularly relevant for senior positions, technical roles, or customer-facing positions where employees gain significant insider knowledge or develop important client relationships. The agreement must comply with Nigerian legislation, including the Labour Act, Trade Secrets Act 2020, and Federal Competition and Consumer Protection Act 2018, ensuring restrictions are reasonable and enforceable. This document typically includes provisions for confidentiality, non-competition, non-solicitation, and intellectual property protection, with specific attention to Nigerian court precedents regarding the enforceability of restrictive covenants.

What sections should be included in a Employee Covenant Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, including the employee's role and purpose of the covenant agreement

3. Definitions: Key terms used throughout the agreement including 'Confidential Information', 'Intellectual Property', 'Business Interests', etc.

4. Duration of Agreement: Term of the covenant agreement, including start date and duration of obligations

5. Confidentiality Obligations: Employee's obligations regarding confidential information, trade secrets, and proprietary information

6. Non-Competition: Restrictions on working with competitors, including geographical and temporal scope

7. Non-Solicitation: Restrictions on soliciting customers, employees, or suppliers

8. Intellectual Property Rights: Assignment and protection of IP created during employment

9. Return of Company Property: Obligations regarding return of company materials and information

10. Breach and Remedies: Consequences of breach and available remedies including injunctive relief

11. Governing Law and Jurisdiction: Specification of Nigerian law and jurisdiction for dispute resolution

12. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

What sections are optional to include in a Employee Covenant Agreement?

1. Garden Leave: Optional provision for paid leave during notice period, used for sensitive roles or when risk of competition is high

2. Training Obligations: Include when employer provides specialized training requiring protection of investment

3. International Operations: Additional provisions for employees working across multiple jurisdictions

4. Share Schemes: Include when employee participates in company share schemes affecting post-employment obligations

5. Industry-Specific Restrictions: Additional restrictions based on specific industry requirements or regulations

What schedules should be included in a Employee Covenant Agreement?

1. Schedule 1 - Restricted Activities: Detailed list of specific activities restricted under non-compete provisions

2. Schedule 2 - Restricted Customers: List of key customers/clients covered by non-solicitation provisions

3. Schedule 3 - Confidential Information: Detailed categorization of confidential information types

4. Appendix A - Acknowledgment Form: Employee acknowledgment of understanding and agreement to terms

5. Appendix B - Geographical Restrictions: Maps or detailed description of geographical scope of restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions




















Clauses























Relevant Industries

Technology

Financial Services

Manufacturing

Professional Services

Healthcare

Telecommunications

Oil and Gas

Retail

Pharmaceuticals

Media and Entertainment

Construction

Education

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research and Development

Information Technology

Product Development

Finance

Operations

Business Development

Client Services

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Account Manager

Research Scientist

Product Manager

Business Development Manager

Financial Controller

Human Resources Director

Operations Manager

Technical Lead

Regional Sales Manager

Senior Consultant

Department Head

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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