The Non-Compete Disclosure Agreement is essential in Philippine business relationships where one party needs to protect its legitimate business interests, trade secrets, and competitive advantage. This document is commonly used when engaging employees, contractors, or business partners who will have access to sensitive information or could potentially compete with the business. The agreement must be carefully drafted to comply with Philippine Constitutional rights, labor laws, and competition regulations, ensuring that restrictions are reasonable in scope, duration, and geographical coverage. It serves as a crucial tool for businesses operating in the Philippines to protect their investments in human capital, proprietary information, and market position while maintaining enforceability under local jurisdiction.
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1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details for companies
2. Background: Context of the agreement, relationship between parties, and purpose of the restrictions
3. Definitions: Detailed definitions of key terms including Confidential Information, Competitive Activity, Territory, and Restricted Period
4. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographical limitations that comply with Philippine law
5. Confidentiality Obligations: Detailed provisions regarding the protection and non-disclosure of confidential information
6. Duration and Territory: Specific timeframe and geographical scope of the restrictions, ensuring reasonableness under Philippine law
7. Exceptions and Permitted Activities: Clear listing of activities that are permitted despite the general restrictions
8. Return of Confidential Information: Obligations regarding the return or destruction of confidential materials upon agreement termination
9. Breach and Remedies: Consequences of breach and available legal remedies including injunctive relief
10. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes
11. General Provisions: Standard clauses including severability, entire agreement, and amendments
1. Assignment: Include when transfer of rights needs to be specifically restricted or permitted
2. Consideration: Include when specific consideration is being provided for the non-compete obligations
3. Survival: Include when certain obligations need to survive termination of the agreement
4. Non-Solicitation: Include when restrictions on soliciting employees, customers, or suppliers are needed
5. Training and Trade Secrets: Include when the agreement relates to specific training or trade secrets provided
6. Alternative Dispute Resolution: Include when parties prefer arbitration or mediation before court proceedings
7. Garden Leave: Include for employment-related agreements where paid non-compete period is required
1. Schedule 1 - Restricted Activities: Detailed list of specific activities that constitute competitive behavior
2. Schedule 2 - Territorial Scope: Detailed description of geographical areas where restrictions apply
3. Schedule 3 - Confidential Information: Comprehensive list of types of confidential information covered
4. Schedule 4 - Key Competitors: List of specific competitors or competitor types if relevant to the restrictions
5. Schedule 5 - Consideration Details: If applicable, details of consideration provided for the non-compete obligations
Relevant legal definitions
Clauses
Relevant Industries
Technology
Manufacturing
Professional Services
Healthcare
Financial Services
Retail
Telecommunications
Pharmaceuticals
Information Technology
Business Process Outsourcing
E-commerce
Research and Development
Consumer Goods
Energy
Construction
Relevant Teams
Legal
Human Resources
Research and Development
Executive Leadership
Sales
Information Technology
Product Development
Business Development
Operations
Engineering
Marketing
Finance
Customer Success
Strategy
Innovation
Relevant Roles
Chief Executive Officer
Chief Technology Officer
Senior Manager
Technical Lead
Sales Director
Research Scientist
Product Manager
Business Development Manager
Software Engineer
Operations Manager
HR Director
Marketing Manager
Financial Controller
Project Manager
Management Consultant
Account Executive
Systems Architect
Department Head
Regional Manager
Technical Specialist
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