The Agreement Not To Work For Competitor is a crucial document in Nigerian business practice, designed to protect employers' legitimate business interests while respecting employees' rights to earn a living. It becomes necessary when employees have access to sensitive information, key client relationships, or trade secrets that could disadvantage the former employer if used by a competitor. The agreement must be carefully drafted to comply with Nigerian constitutional rights, labor laws, and competition regulations, ensuring restrictions are reasonable in duration and geographical scope. Typically used for senior executives, technical specialists, and key client-facing roles, this document outlines specific prohibited activities, defines competitor organizations, and establishes enforcement mechanisms recognized by Nigerian courts.
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1. Parties: Identification of the employer and employee/former employee, including full legal names and addresses
2. Background: Context of the agreement, including the employee's role, access to confidential information, and legitimate business interests being protected
3. Definitions: Key terms including 'Restricted Business', 'Competitor', 'Confidential Information', 'Territory', and 'Restricted Period'
4. Non-Competition Obligations: Core restrictions on working with competitors, including geographical scope and duration
5. Non-Solicitation of Customers: Restrictions on approaching or dealing with customers or prospective customers
6. Non-Solicitation of Employees: Restrictions on recruiting or attempting to recruit other employees
7. Confidentiality Obligations: Obligations regarding the protection and non-disclosure of confidential information
8. Duration and Territory: Specific timeframes and geographical areas where restrictions apply
9. Acknowledgments: Employee's confirmation of reasonableness and understanding of restrictions
10. Remedies: Consequences of breach and available legal remedies including injunctive relief
11. General Provisions: Standard clauses including governing law, severability, and entire agreement
1. Garden Leave: Provisions for paid leave during notice period to protect business interests
2. International Scope: Additional provisions for businesses operating in multiple countries
3. Post-Employment Compensation: Terms of any payment made in consideration for non-compete restrictions
4. Return of Property: Requirements for returning company property and documents
5. Independent Legal Advice: Confirmation that employee has received or had opportunity for independent legal advice
6. Alternative Dispute Resolution: Procedures for resolving disputes through mediation or arbitration
7. Training Costs Reimbursement: Provisions regarding repayment of training costs if applicable
1. Schedule 1 - Restricted Competitors: List of specific competitors or types of competing businesses
2. Schedule 2 - Restricted Customers: List of specific customers or customer categories covered by restrictions
3. Schedule 3 - Restricted Territory: Detailed description or maps of geographical areas covered by restrictions
4. Schedule 4 - Confidential Information: Detailed categories and examples of confidential information
5. Appendix A - Consideration Details: Details of any financial compensation provided for the restrictions
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