This Non-Compete Agreement After Resignation is designed for use in New Zealand business contexts where protecting company interests post-employment is crucial. It is typically implemented when an employee with access to sensitive information, valuable client relationships, or trade secrets resigns from their position. The document outlines specific restrictions on competitive activities, customer and employee solicitation, and the use of confidential information, all within parameters considered reasonable under New Zealand law. The agreement must balance the employer's need to protect legitimate business interests with the employee's right to earn a living, ensuring compliance with the Employment Relations Act 2000 and relevant case law. It is particularly important for senior positions, specialized technical roles, or situations where the employee has had significant access to proprietary information or customer relationships.
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1. Parties: Identification of the employer and the employee entering into the agreement
2. Background: Context of the agreement, including the employee's former position and access to confidential information
3. Definitions: Key terms used in the agreement including 'Confidential Information', 'Competitive Activity', 'Restricted Period', and 'Restricted Territory'
4. Acknowledgments: Employee's acknowledgment of receiving confidential information and the reasonableness of restrictions
5. Non-Compete Obligations: Specific restrictions on competitive activities, including duration and geographic scope
6. Non-Solicitation of Customers: Restrictions on approaching or dealing with company customers
7. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees
8. Confidentiality Obligations: Ongoing obligations regarding confidential information
9. Consideration: The consideration provided in exchange for the restrictions
10. Duration and Territory: Specific timeframe and geographic area of restrictions
11. Breach and Remedies: Consequences of breach and available remedies
12. Severability: Provision for partial enforcement if any clause is found invalid
13. Governing Law: Specification of New Zealand law as governing law
14. Execution: Signature blocks and execution requirements
1. Garden Leave: Optional provisions regarding paid leave during notice period - include when specific cooling-off period is required
2. Return of Property: Detailed provisions about company property return - include when significant company assets are involved
3. Independent Legal Advice: Acknowledgment of receiving independent legal advice - include for more senior employees or complex restrictions
4. Survival of Obligations: Specification of which obligations survive termination - include when multiple post-employment obligations exist
5. Dispute Resolution: Alternative dispute resolution procedures - include when parties prefer mediation before litigation
6. Variation: Process for modifying the agreement - include when flexibility might be needed
1. Schedule 1: Restricted Territory: Detailed description of geographic areas where restrictions apply, including maps if necessary
2. Schedule 2: Restricted Customers: List of specific customers or customer categories covered by restrictions
3. Schedule 3: Confidential Information: Detailed list of types of confidential information covered
4. Appendix A: Employee's Former Position Details: Details of employee's role, responsibilities, and access to confidential information
5. Appendix B: Consideration Details: Detailed breakdown of any financial or other consideration provided
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