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A Non-Compete Agreement is a legal contract that stops employees from working for competing businesses or starting rival companies after leaving their job. In New Zealand, these agreements must be reasonable in scope and duration to be enforceable under the Employment Relations Act.

Courts will only uphold non-competes that protect legitimate business interests, like trade secrets or client relationships. They typically limit restrictions to 6-12 months and a specific geographic area. Employers must provide fair compensation or "consideration" to make these agreements binding, usually as part of the employment package.

Use a Non-Compete Agreement when hiring employees who will gain access to valuable business secrets, client relationships, or specialized knowledge. This is especially important for senior roles, sales positions, and technical experts who could seriously harm your business by taking insider knowledge to competitors.

The timing matters - introduce these agreements during initial employment negotiations or significant role changes. For existing staff, you'll need to offer extra benefits to make the agreement binding under NZ law. Focus on protecting specific business interests like client lists, pricing strategies, or proprietary processes rather than broadly restricting future employment.

• Not To Compete Agreement: Basic version focusing on direct competition restrictions for general employees
• Non Compete Non Solicitation Agreement: Broader protection preventing both competition and customer poaching
• Non Compete Shareholders Agreement: Specifically for business owners and investors to protect company interests
• Non Compete Letter: Simplified format for basic restrictions, often used with contractors
• Non Compete Agreement After Resignation: Post-employment agreement requiring new consideration

• Employers: Companies and business owners who need to protect trade secrets, client relationships, and competitive advantages
• Senior Executives: High-level managers and directors who gain access to sensitive business information and strategic plans
• Sales Representatives: Staff with direct client relationships and detailed knowledge of pricing and customer data
• Technical Specialists: Engineers, developers, and experts who work with proprietary technology or processes
• Employment Lawyers: Legal professionals who draft and review agreements to ensure compliance with NZ employment law
• HR Managers: Staff responsible for implementing and managing these agreements within the organization

• Business Scope: Define exactly what competitive activities need protection - client lists, trade secrets, or specific market segments
• Time Period: Determine a reasonable restriction period, typically 6-12 months in NZ, based on industry standards
• Geographic Area: Map out specific regions where restrictions apply, keeping them proportional to business reach
• Role Details: Document the employee's position, access to confidential information, and client relationships
• Compensation: Outline what benefits or consideration the employee receives in exchange for these restrictions
• Draft Review: Use our platform to generate a legally-sound agreement that includes all required elements under NZ law

• Party Details: Full legal names, addresses, and roles of employer and employee
• Scope Definition: Clear description of prohibited competitive activities and protected business interests
• Duration: Specific time period for restrictions, stated in months or years
• Geographic Limits: Precise boundaries where restrictions apply
• Consideration: Details of compensation or benefits provided in exchange for the agreement
• Reasonableness Statement: Confirmation that restrictions are necessary to protect legitimate business interests
• Severability Clause: Allows rest of agreement to remain valid if one part is found unenforceable
• Governing Law: Explicit reference to New Zealand employment law jurisdiction

A Non-Compete Agreement differs significantly from a Non-Disclosure Agreement (NDA), though both protect business interests. While non-competes restrict future employment or business activities, NDAs focus specifically on protecting confidential information without limiting where someone can work.

• Scope of Protection: Non-competes prevent competitive business activities, while NDAs only stop information sharing
• Duration Impact: Non-competes typically last 6-12 months in NZ, while NDAs often extend indefinitely
• Legal Scrutiny: Courts examine non-competes more strictly, requiring reasonable limits and compensation. NDAs face less scrutiny
• Business Application: Non-competes suit key employees with competitive knowledge, while NDAs work for any party accessing confidential information
• Enforcement Focus: Non-competes target future employment choices, while NDAs protect specific information regardless of employment