Non-Compete Agreement Policy

Non-Compete Agreement Policy

Company Name: [Company Name]
Effective Date: [Effective Date]
Policy Owner: [Policy Owner]
Approved By: [Approved By]
Restriction Duration: [Restriction Duration]

PURPOSE & SCOPE
- This policy governs the use of non-compete agreements within the Organization to protect legitimate business interests, including trade secrets, proprietary information, client relationships, and specialised training investments.
- Non-compete agreements shall be required for employees in designated roles that involve access to trade secrets, strategic client relationships, or senior leadership responsibilities. The HR department shall maintain a list of roles subject to non-compete requirements.

AGREEMENT TERMS & RESTRICTIONS
- Non-compete restrictions shall be limited to a maximum duration of 12 months following the termination of employment, unless a shorter period is required by applicable law. The duration shall be proportionate to the employee's level of access to sensitive information.
- The geographic scope of non-compete restrictions shall be limited to the specific markets, territories, or regions in which the employee was actively engaged on behalf of the Organization during the 24 months preceding their separation.
- Non-compete restrictions shall clearly define the activities that are prohibited, specifying the types of competitive businesses, roles, or engagements from which the employee is restricted. Restrictions shall not extend to unrelated industries or non-competitive functions.

CONSIDERATION & COMPENSATION
- Non-compete agreements entered into at the time of hiring shall be supported by the consideration of initial employment. For existing employees, additional consideration such as a promotion, salary increase, bonus, or equity grant shall be required to support the enforceability of the agreement.
- The Organization may provide garden leave compensation or a monthly stipend during the non-compete restriction period where required by applicable law or where such compensation is deemed appropriate to support enforceability.

ENFORCEABILITY & LEGAL COMPLIANCE
- All non-compete agreements shall be reviewed by Legal Counsel for enforceability under the laws of the jurisdiction governing the employee's employment. In jurisdictions where non-compete agreements are prohibited or unenforceable, the Organization shall rely on non-solicitation and confidentiality protections instead.
- The Organization shall include a severability clause in all non-compete agreements providing that if any provision is found to be unenforceable, the remaining provisions shall continue in full force and effect, and the unenforceable provision shall be modified to the minimum extent necessary to make it enforceable.
- The Organization reserves the right to seek injunctive relief and monetary damages through the courts for any breach of a non-compete agreement. Employees found to have breached their non-compete obligations may be required to forfeit any post-employment compensation or severance payments.

POLICY GOVERNANCE & REVIEW
- This policy shall be reviewed at least annually by the HR department and Legal Counsel to ensure alignment with evolving legislation, judicial trends, and the Organization's business strategy. Amendments to non-compete templates shall be applied prospectively to new agreements.
- The HR department shall maintain a centralised register of all employees subject to active non-compete agreements, including the agreement terms, expiration dates, and any waivers or modifications granted.