The Small Business Non Compete Agreement is a crucial legal document used in Australian business contexts to protect legitimate business interests while maintaining compliance with competition laws. It is typically employed when engaging new employees, contractors, or business partners, or when selling a small business. The agreement must be carefully drafted to ensure it meets the reasonableness test under Australian common law, focusing on protecting legitimate business interests without imposing undue restrictions on trade. Key considerations include geographic scope, duration, and the nature of restricted activities, all of which must be proportionate to the business's size and market position. This document is particularly relevant in situations involving access to confidential information, client relationships, or specialized business knowledge.
Small Business Non Compete Agreement Template for Australia
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Key Requirements PROMPT example:
Small Business Non Compete Agreement
"I need a Small Business Non-Compete Agreement for my Melbourne-based digital marketing agency to use with a senior consultant who will have access to our client database and proprietary methodologies, with restrictions covering Victoria and New South Wales for 12 months after termination."
1. Parties: Identifies the parties entering into the agreement, including their legal names, ABN/ACN, and registered addresses
2. Background: Sets out the context of the agreement, including the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement
4. Non-Compete Obligations: Details the specific restrictions on competition, including scope of prohibited activities
5. Duration and Territory: Specifies the time period and geographic area where the non-compete obligations apply
6. Confidential Information: Defines and protects confidential information that must not be disclosed or used
7. Acknowledgments: Party acknowledgments regarding reasonableness of restrictions and receipt of consideration
8. Remedies: Outlines available remedies in case of breach, including injunctive relief
9. General Provisions: Standard contract terms including governing law, entire agreement, and severability
1. Non-Solicitation of Employees: Additional restrictions on hiring or soliciting employees, used when employee poaching is a concern
2. Non-Solicitation of Customers: Restrictions on approaching customers, used when customer relationships are particularly valuable
3. Assignment Rights: Provisions regarding the right to assign the agreement, included when business sale or restructuring is contemplated
4. Garden Leave: Provisions for paid leave during notice period, used for senior positions or high-risk situations
5. Training and Investment: Details of specific training or investments made in the restricted party, included to support reasonableness of restrictions
1. Schedule 1 - Restricted Business Activities: Detailed list of specific business activities covered by the non-compete provisions
2. Schedule 2 - Restricted Territory: Detailed description or maps of the geographic area covered by restrictions
3. Schedule 3 - Consideration: Details of consideration provided in exchange for the non-compete obligations
4. Schedule 4 - Confidential Information: Detailed list or categories of protected confidential information
5. Appendix A - Cascading Clauses: Series of alternative restrictions with varying scopes to ensure partial validity if challenged
Authors
Relevant legal definitions
Clauses
Relevant Industries
Professional Services
Technology
Retail
Healthcare
Hospitality
Construction
Manufacturing
Financial Services
Education and Training
Marketing and Advertising
Consulting
Real Estate
Food and Beverage
Creative Industries
Relevant Teams
Human Resources
Legal
Operations
Sales
Business Development
Executive Leadership
Administration
Finance
Marketing
Client Services
Relevant Roles
Small Business Owner
Managing Director
General Manager
Sales Manager
Business Development Manager
Technical Lead
Senior Consultant
Operations Manager
Account Manager
Project Manager
Marketing Manager
Chief Executive Officer
Department Head
Key Account Executive
Regional Manager
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