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Employee Covenant Agreement Template for New Zealand

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Key Requirements PROMPT example:

Employee Covenant Agreement

"I need an Employee Covenant Agreement for a senior software developer in Auckland who will have access to our core technology IP and customer database, with particularly strong non-compete provisions for the Asia-Pacific region."

Document background
The Employee Covenant Agreement serves as a critical legal instrument in New Zealand employment relationships, particularly for roles involving access to confidential information, client relationships, or intellectual property. This document is typically implemented either at the commencement of employment or during employment when an employee moves into a sensitive role. It encompasses various protective measures including confidentiality obligations, intellectual property assignments, non-competition restrictions, and non-solicitation provisions, all drafted in accordance with New Zealand employment law principles. The agreement must balance the employer's need to protect legitimate business interests with the employee's right to work and earn a living, ensuring all restrictions are reasonable and enforceable under New Zealand jurisdiction.
Suggested Sections

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 covenants

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

4. Duration and Application: Period during which the covenants apply, both during and after employment

5. Confidentiality Obligations: Details of confidentiality requirements, including definition of confidential information and handling procedures

6. Intellectual Property Rights: Assignment and protection of IP created during employment, including inventions and works

7. Non-Competition Covenant: Restrictions on working with competitors, including geographic and temporal limits

8. Non-Solicitation of Customers: Restrictions on approaching or dealing with company customers

9. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees

10. Return of Company Property: Obligations regarding return of company assets and information upon termination

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

12. General Provisions: Standard clauses including severability, modification, governing law, and entire agreement

13. Execution: Signature blocks and attestation

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period - include for senior roles or when significant customer relationships exist

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

3. Social Media and Digital Assets: Specific provisions regarding social media accounts and digital content - include for marketing/social media roles

4. Industry-Specific Restrictions: Additional restrictions specific to particular industries (e.g., financial services, technology)

5. Training Repayment: Provisions for repayment of training costs - include when significant training investment is made

6. Client Team Restrictions: Specific provisions preventing the employee from taking entire client teams - include for senior client-facing roles

7. Acknowledgments: Employee acknowledgments of reasonableness of restrictions - recommended for enhanced enforceability

Suggested Schedules

1. Schedule 1 - Confidential Information: Detailed list of types of confidential information specific to the role

2. Schedule 2 - Restricted Customers: List of specific customers or customer categories covered by restrictions

3. Schedule 3 - Restricted Territory: Detailed description of geographic areas covered by non-compete provisions

4. Schedule 4 - Intellectual Property: List of existing IP and specific IP provisions relevant to the role

5. Schedule 5 - Company Property: Comprehensive list of company property and assets in employee's possession

Authors

Alex Denne

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

Relevant legal definitions

























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Relevant Industries

Technology

Financial Services

Professional Services

Healthcare

Manufacturing

Research and Development

Telecommunications

Consulting

Retail

Media and Entertainment

Pharmaceuticals

Engineering

Education

Marketing and Advertising

Relevant Teams

Executive Leadership

Sales

Information Technology

Research & Development

Human Resources

Finance

Marketing

Operations

Legal

Client Services

Product Development

Engineering

Data Analytics

Business Development

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Developer

Account Manager

Research Scientist

Product Manager

Business Development Manager

Human Resources Director

Financial Controller

Marketing Manager

Senior Consultant

Technical Lead

Operations Manager

Client Services Director

Senior Engineer

Data Scientist

Regional Manager

Legal Counsel

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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