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Employment Contract Non Compete Template for Pakistan

A comprehensive employment agreement governed by Pakistani law that establishes the terms and conditions of employment while incorporating specific non-compete provisions. The document ensures compliance with Pakistan's Contract Act 1872 and relevant employment legislation while protecting the employer's legitimate business interests. It details the employment relationship, including compensation, duties, and benefits, while specifically restricting the employee's ability to engage in competitive activities during and after employment for a specified period and within defined geographical boundaries. The agreement balances the employer's need to protect confidential information and business relationships with the employee's constitutional right to trade and profession under Pakistani law.

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What is a Employment Contract Non Compete?

This Employment Contract Non Compete is designed for use in Pakistan when hiring employees in positions with access to sensitive business information or significant customer relationships. The document combines standard employment terms with robust non-compete provisions, ensuring compliance with Pakistani legislation, particularly the Contract Act 1872 and relevant employment laws. It's specifically structured to be enforceable under Pakistani jurisdiction while protecting the employer's legitimate business interests through carefully drafted restrictive covenants. The agreement is particularly relevant for roles involving proprietary information, client relationships, or specialized knowledge, and includes comprehensive terms covering employment conditions, confidentiality obligations, and post-employment restrictions. The non-compete provisions are drafted considering Pakistani courts' approach to reasonable restrictions in terms of duration, geographic scope, and business activities.

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

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

2. Background: Context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including 'Confidential Information', 'Competing Business', 'Territory', etc.

4. Appointment and Term: Position, job title, and duration of employment (fixed-term or permanent)

5. Duties and Responsibilities: Main responsibilities, reporting structure, and performance expectations

6. Compensation and Benefits: Salary, bonuses, allowances, and other benefits

7. Working Hours and Leave: Standard working hours, overtime policy, and leave entitlements

8. Confidentiality: Obligations regarding confidential information during and after employment

9. Non-Compete Covenant: Restrictions on working with competitors or starting competing business, including duration and geographic scope

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

11. Intellectual Property: Ownership and rights over work created during employment

12. Termination: Grounds for termination, notice periods, and consequences

13. Post-Termination Obligations: Continuing obligations after employment ends

14. Governing Law and Jurisdiction: Specification of Pakistani law and relevant jurisdiction

15. General Provisions: Standard boilerplate clauses including amendments, waivers, and severability

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

1. Probation Period: Details of initial probationary period - include for new employees

2. Performance Reviews: Structure and timing of performance evaluations - include for management positions

3. Commission Structure: Details of sales or performance-based commission - include for sales positions

4. International Travel: Terms for international travel and assignments - include if role requires travel

5. Training Obligations: Required training and consequences of early departure - include if significant training investment

6. Garden Leave: Provisions for garden leave during notice period - include for senior positions

7. Share Options/Equity: Details of any share or equity participation - include if offering equity compensation

8. Relocation Terms: Relocation assistance and conditions - include if position requires relocation

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

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and requirements

2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and payment terms

3. Schedule 3 - Restricted Territory: Detailed definition of geographic areas covered by non-compete

4. Schedule 4 - Competing Businesses: List of specific competitors or competing business types

5. Schedule 5 - Company Policies: Reference to or summary of key company policies applicable to the role

6. Schedule 6 - Confidential Information: Detailed list of types of confidential information covered

7. Appendix A - Benefits Summary: Detailed overview of all benefits and eligibility conditions

8. Appendix B - Performance Metrics: Specific KPIs and performance evaluation criteria

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

Pakistan

Publisher

Ƶ

Cost

Free to use

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