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The 1 Year Non-Compete Agreement is a crucial legal instrument in South African business practice, typically implemented when an organization needs to protect its legitimate business interests from competitive activities by former employees or business associates. This document is particularly relevant when individuals have access to sensitive information, key client relationships, or specialized knowledge that could be detrimental to the business if used by competitors. Under South African law, such agreements are enforceable provided they meet the reasonableness test established in case law, particularly regarding duration, geographical scope, and the scope of restricted activities. The agreement should be used when onboarding key employees, during business acquisitions, or when establishing significant business relationships where protection of business interests is paramount. It includes specific provisions for the South African context, ensuring compliance with local labor laws, constitutional principles, and competition regulations.

1. Parties: Identifies and defines the parties to the agreement - the business entity and the individual bound by the non-compete

2. Background: Explains the context of the agreement, including the nature of the business relationship and legitimate business interests being protected

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

4. Duration and Term: Specifies the 1-year duration of the non-compete obligations and when this period begins

5. Scope of Restrictions: Details the specific activities that are prohibited, including competing business activities and solicitation restrictions

6. Geographic Area: Defines the geographical boundaries within which the non-compete restrictions apply

7. Acknowledgments: Contains the individual's acknowledgment that the restrictions are reasonable and necessary

8. Exceptions: Lists permitted activities and circumstances where the non-compete restrictions don't apply

9. Breach and Remedies: Outlines the consequences of breaching the agreement and available remedies

10. General Provisions: Standard clauses including governing law, severability, and entire agreement provisions