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Employee Non Compete Agreement for New Zealand

Employee Non Compete Agreement Template for New Zealand

A New Zealand Employee Non-Compete Agreement is a legally binding document that restricts an employee from competing with their former employer for a specified period after their employment ends. The agreement must comply with New Zealand employment law principles, particularly regarding reasonableness in duration, geographical scope, and scope of restricted activities. It typically includes provisions for protecting confidential information, client relationships, and intellectual property while balancing the employee's right to earn a living. Under New Zealand law, such agreements are scrutinized carefully to ensure they don't impose unreasonable restrictions on trade or employment opportunities.

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What is a Employee Non Compete Agreement?

Employee Non-Compete Agreements are essential tools for businesses in New Zealand seeking to protect their legitimate business interests, including confidential information, client relationships, and competitive advantage. These agreements are typically used when onboarding new employees or during significant role changes where employees gain access to sensitive information or strategic relationships. The agreement must be carefully drafted to comply with New Zealand employment law, which requires restrictions to be reasonable in terms of duration, geographical scope, and prohibited activities. Courts will only enforce these agreements if they protect legitimate business interests and don't unfairly restrict an employee's ability to earn a living. The agreement should include clear definitions of restricted activities, geographical boundaries, and time periods, along with specific considerations for the New Zealand market and legal framework.

What sections should be included in a Employee Non Compete Agreement?

1. Parties: Identifies the employer and employee, including their full legal names and addresses

2. Background: Sets out the context of the agreement, including the employee's role and reason for the non-compete provisions

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Business', 'Territory', and 'Restricted Period'

4. Duration of Restrictions: Specifies the time period during which the non-compete obligations will apply after employment termination

5. Geographic Scope: Defines the geographical area where the restrictions apply

6. Prohibited Activities: Details specific activities the employee cannot engage in post-employment

7. Confidentiality Obligations: Outlines the employee's obligations regarding confidential information

8. Non-Solicitation: Prevents the employee from soliciting customers, clients, or other employees

9. Acknowledgment of Reasonableness: Employee's acknowledgment that the restrictions are reasonable and necessary

10. Consideration: Specifies the consideration provided to the employee in exchange for the restrictions

11. Remedies: Sets out the consequences of breach and available remedies

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

What sections are optional to include in a Employee Non Compete Agreement?

1. Garden Leave: Optional provision for paid leave during notice period to protect business interests

2. Post-Employment Notifications: Requirements for the employee to notify new employers of restrictions

3. Independent Legal Advice: Acknowledgment that the employee has received or had the opportunity to receive independent legal advice

4. Compensation During Restriction: Terms for any payment during the restricted period, if applicable

5. Intellectual Property Rights: Additional provisions regarding ownership and protection of IP

6. Monitoring Compliance: Procedures for monitoring compliance with the restrictions

What schedules should be included in a Employee Non Compete Agreement?

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by the restrictions

2. Schedule 2 - Restricted Clients: List of specific clients or categories of clients the employee cannot approach

3. Schedule 3 - Confidential Information: Detailed list or categories of confidential information covered by the agreement

4. Appendix A - Employee's Position and Duties: Detailed description of the employee's role and responsibilities

5. Appendix B - Consideration Details: Specific details of any additional compensation or benefits provided in exchange for the 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

New Zealand

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions


























Clauses

























Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Retail

Telecommunications

Consulting

Research and Development

Pharmaceuticals

Software Development

Media and Entertainment

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research & Development

Product Development

Client Services

Operations

Information Technology

Business Development

Finance

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Account Manager

Research Scientist

Product Manager

Business Development Manager

Financial Controller

Technical Lead

Senior Consultant

Regional Manager

Head of Operations

Chief Marketing Officer

Senior Account Executive

Investment Manager

Clinical Director

Principal Engineer

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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