This Non-Compete Contract is designed for use in Hong Kong employment relationships where an employer needs to protect legitimate business interests such as trade secrets, confidential information, customer relationships, and workforce stability. It is particularly relevant when employees have access to sensitive information or significant customer relationships. The document incorporates Hong Kong legal requirements and common law principles, ensuring enforceability while maintaining reasonable restrictions. It should be used when onboarding new employees in sensitive positions or when promoting employees to roles with access to critical business information. The agreement typically includes specific details about restricted activities, geographical limitations, time periods, and the scope of competition restrictions, all tailored to comply with Hong Kong's legal framework regarding restraint of trade.
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1. Parties: Identification of the employer and employee/former employee entering into the agreement
2. Background: Context of the agreement, including the employee's role and access to sensitive information
3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Period', and 'Restricted Territory'
4. Non-Compete Obligations: Core restrictions on competing activities, including scope, duration, and geographical limitations
5. Non-Solicitation of Customers: Restrictions on approaching or dealing with existing customers
6. Non-Solicitation of Employees: Restrictions on recruiting or hiring other employees
7. Confidentiality Obligations: Requirements to maintain confidentiality of business information
8. Acknowledgments: Employee's confirmation of the reasonableness of restrictions
9. Duration and Territory: Specific timeframe and geographical scope of restrictions
10. Severability: Provisions for maintaining validity if parts are found unenforceable
11. Governing Law and Jurisdiction: Specification of Hong Kong law and courts' jurisdiction
12. Entire Agreement: Confirmation that this document represents the complete agreement between parties
1. Garden Leave: Provisions for paid leave during notice period, used when immediate removal from competition is desired
2. Consideration: Details of any additional payment or benefit provided specifically for the non-compete obligations, included when separate consideration is being offered
3. Return of Property: Requirements for returning company property and documents, included when employee has possession of significant company assets
4. Independent Legal Advice: Acknowledgment of receiving independent legal advice, included for additional enforceability
5. Post-Termination Assistance: Requirements to assist with handover or transitions, included for senior positions
6. Monitoring and Compliance: Procedures for monitoring compliance with restrictions, included for high-risk situations
7. Alternative Dispute Resolution: Mediation or arbitration provisions, included when parties prefer alternative to court proceedings
1. Schedule 1: Restricted Territory: Detailed list of geographical areas covered by restrictions
2. Schedule 2: Competing Businesses: List of specific competitors or types of competing businesses
3. Schedule 3: Confidential Information: Detailed categorization of confidential information covered
4. Schedule 4: Key Customers: List of specific customers covered by non-solicitation provisions
5. Appendix A: Consideration Details: Breakdown of any consideration provided for the restrictions
6. Appendix B: Employee's Position and Duties: Detailed description of role and responsibilities justifying restrictions
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