Document background
The Key Person Agreement is essential for organizations operating in South Africa that need to retain and protect their relationships with employees who are vital to their business operations. These employees typically possess specialized knowledge, skills, or relationships that make them particularly valuable to the organization. The agreement goes beyond a standard employment contract by including additional provisions for enhanced compensation, specific performance metrics, and robust protective measures for the company. It must comply with South African legislation while addressing unique aspects of the key person's role, including confidentiality obligations, restraint of trade provisions, and intellectual property rights. The document is particularly crucial in situations where the loss of the employee would significantly impact the company's operations, client relationships, or competitive position.
