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Non Solicitation NDA Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that combines traditional confidentiality protections with specific non-solicitation provisions. This document restricts parties from both disclosing confidential information and attempting to solicit employees, customers, or business relationships from the other party. It incorporates Malaysian legal requirements, including considerations from the Contracts Act 1950 and relevant common law principles, while ensuring compliance with local employment and competition laws.

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What is a Non Solicitation NDA?

This Non-Solicitation NDA is designed for use in business relationships where parties need to protect both confidential information and their business interests under Malaysian law. It is particularly crucial in situations involving business partnerships, potential investments, or employment relationships where parties gain access to sensitive information and business connections. The document combines standard confidentiality provisions with specific clauses preventing the solicitation of employees, customers, and business partners. This dual protection is essential in Malaysia's dynamic business environment, where employee mobility and competitive pressures make both confidentiality and non-solicitation provisions crucial for business protection.

What sections should be included in a Non Solicitation NDA?

1. Parties: Identifies and defines the contracting parties, including their full legal names, registration numbers, and registered addresses

2. Background: Sets out the context and purpose of the agreement, including the nature of the business relationship between the parties

3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Representatives', 'Solicitation', and other relevant terms

4. Confidentiality Obligations: Details the core obligations regarding the protection and non-disclosure of confidential information

5. Non-Solicitation Obligations: Specifies restrictions on soliciting employees, customers, suppliers, and other business relationships

6. Duration: Specifies the term of both confidentiality and non-solicitation obligations

7. Permitted Disclosures: Outlines circumstances under which confidential information may be disclosed

8. Return of Confidential Information: Procedures for returning or destroying confidential information

9. Breach and Remedies: Specifies consequences of breach and available remedies

10. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, and variation

What sections are optional to include in a Non Solicitation NDA?

1. Specific Industry Restrictions: Additional restrictions specific to certain industries or sectors, used when the agreement covers regulated industries

2. Digital Data Protection: Specific provisions for handling digital data and cybersecurity measures, used when significant digital assets are involved

3. International Transfer Provisions: Provisions governing cross-border transfer of information, used when parties operate in multiple jurisdictions

4. Audit Rights: Rights to audit compliance with the agreement, used in high-risk or highly regulated relationships

5. Insurance Requirements: Specific insurance obligations, used when handling particularly sensitive or valuable information

6. Survival Clause: Specifies which provisions survive termination, used in complex commercial relationships

What schedules should be included in a Non Solicitation NDA?

1. Schedule 1 - Defined Confidential Information: Detailed list or categories of information considered confidential

2. Schedule 2 - Restricted Entities: List of specific competitors or entities covered by non-solicitation provisions

3. Schedule 3 - Authorized Representatives: List of personnel authorized to receive and handle confidential information

4. Schedule 4 - Security Protocols: Specific procedures for handling and protecting confidential information

5. Appendix A - Notice Requirements: Contact details and procedures for required notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Ƶ

Cost

Free to use

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