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Not To Compete Agreement

Not To Compete Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Not To Compete Agreement

"I need a Not To Compete Agreement for a senior software developer in Riyadh who will have access to our proprietary AI algorithms, restricting them from working with competitors in the Gulf region for 2 years after employment ends in March 2025."

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Document background
The Not To Compete Agreement is a crucial document for businesses operating in Saudi Arabia seeking to protect their legitimate interests, trade secrets, and competitive advantage. It is typically used when onboarding senior executives, technical specialists, or employees with access to sensitive information or important client relationships. The agreement must be carefully drafted to comply with Saudi Labor Law, particularly Article 83, which requires specific conditions for enforceability including reasonable restrictions in time and geography. The document should be used as part of a comprehensive employment strategy, particularly in situations where employees will have access to confidential information, specialized training, or valuable customer relationships. The agreement needs to balance the employer's protection needs with employee rights under Saudi law and Sharia principles.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, including the employee's role and access to confidential information

3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Period', and 'Restricted Territory'

4. Scope of Restrictions: Detailed description of prohibited activities and competition restrictions

5. Duration of Restrictions: Time period for which the non-compete obligations will apply

6. Geographic Limitations: Specific geographic areas where the restrictions apply

7. Consideration: Compensation or benefits provided to the employee in exchange for the non-compete obligations

8. Confidentiality Obligations: Requirements regarding the protection of confidential information and trade secrets

9. Acknowledgments: Employee's confirmation of understanding and agreement to the restrictions

10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant courts for dispute resolution

12. Execution: Signature blocks and execution requirements

Optional Sections

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

2. Non-Solicitation: Additional restrictions on soliciting customers or employees, if relevant to the business

3. Training Compensation: Provisions regarding repayment of specialized training costs, if applicable

4. Severability: Clause ensuring partial enforcement if some provisions are found invalid

5. Assignment: Rights to assign the agreement, particularly in case of business sale or restructuring

6. Survival: Specification of which provisions survive termination of employment

Suggested Schedules

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

2. Schedule 2: Competing Businesses: List of specific competitors or types of competing businesses

3. Schedule 3: Confidential Information: Detailed categorization of confidential information and trade secrets

4. Appendix A: Consideration Details: Specific details of any compensation or benefits provided for the non-compete obligations

5. Appendix B: Employee's Position and Access: Description of employee's role and access to confidential information justifying the restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Industries

Technology

Healthcare

Financial Services

Professional Services

Manufacturing

Telecommunications

Energy

Consulting

Retail

Pharmaceuticals

Engineering

Research and Development

Education and Training

Aviation

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Relevant Teams

Legal

Executive Leadership

Research & Development

Sales

Product Development

Information Technology

Business Development

Operations

Human Resources

Finance

Strategy

Technical Services

Client Services

Marketing

Innovation

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Research Scientist

Senior Software Engineer

Business Development Manager

Technical Architect

Product Manager

Senior Consultant

Regional Manager

Head of Operations

Chief Financial Officer

Marketing Director

Account Executive

Senior Research Engineer

Clinical Director

Investment Manager

Principal Engineer

Strategy Director

Head of Innovation

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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