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Non Compete Employment Contract Template for Nigeria

A Non-Compete Employment Contract under Nigerian law is a legally binding agreement between an employer and employee that restricts the employee from engaging in competitive activities during and after their employment. This document establishes specific temporal and geographical limitations on competitive activities, protects confidential information, and prevents solicitation of clients and employees. It must comply with Nigerian constitutional rights, labor laws, and contract law principles, ensuring restrictions are reasonable and necessary to protect legitimate business interests. The agreement includes detailed provisions on scope, duration, geographical boundaries, and consequences of breach, while maintaining enforceability under Nigerian jurisdiction.

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What is a Non Compete Employment Contract?

The Non-Compete Employment Contract is essential for businesses operating in Nigeria who need to protect their legitimate business interests, trade secrets, and competitive advantage. This document is typically used when hiring employees who will have access to sensitive information, key client relationships, or valuable intellectual property. It must be carefully drafted to comply with Nigerian legal requirements, including constitutional rights to freedom of movement and employment, while providing reasonable restrictions on post-employment activities. The agreement typically includes specific terms about restricted activities, geographical limitations, time periods, and consideration provided to the employee. Given the complexity of enforcing non-compete agreements in Nigeria, particular attention must be paid to ensuring the restrictions are reasonable and necessary for protecting the employer's legitimate business interests.

What sections should be included in a Non Compete Employment Contract?

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

2. Background: Context of the employment relationship and reason for the non-compete provisions

3. Definitions: Key terms including 'Confidential Information', 'Competing Business', 'Restricted Territory', 'Restricted Period', etc.

4. Scope of Employment: Overview of employee's role, responsibilities, and relationship with the company

5. Non-Compete Obligations: Core restrictions on competitive activities, including temporal and geographical limitations

6. Non-Solicitation: Restrictions on soliciting customers, employees, or suppliers

7. Confidentiality: Obligations regarding confidential information and trade secrets

8. Duration: Time period for which the non-compete restrictions apply post-employment

9. Geographical Scope: Specific territories where restrictions apply

10. Consideration: Compensation or benefits provided in exchange for the non-compete agreement

11. Breach and Remedies: Consequences of violating the agreement and available remedies

12. Severability: Provision ensuring partial enforcement if any clause is found invalid

13. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction of Nigerian courts

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Non Compete Employment Contract?

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

2. Training Compensation: Provisions regarding repayment of training costs if included as part of consideration

3. Intellectual Property: Additional provisions regarding ownership and protection of IP if relevant to the role

4. Post-termination Assistance: Requirements for employee assistance after employment ends

5. Alternative Dispute Resolution: Optional mediation or arbitration provisions before court proceedings

6. Survival Clause: Specifying which provisions survive termination of employment

7. Exception Circumstances: Specific situations where non-compete restrictions may be waived

What schedules should be included in a Non Compete Employment Contract?

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions

2. Schedule 2 - Competing Businesses: List of specific competitors or types of businesses considered competitive

3. Schedule 3 - Confidential Information: Detailed categorization of information considered confidential

4. Schedule 4 - Compensation Details: Specific details of consideration provided for non-compete obligations

5. Appendix A - Employee's Position and Duties: Detailed description of employee's role and responsibilities

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

Nigeria

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use

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