The Non-Solicitation Agreement is a crucial legal instrument used in Malta to protect businesses from the loss of valuable employees, clients, and business relationships. It is particularly relevant when employees, contractors, or business partners have access to sensitive information or maintain significant client relationships. The agreement must be carefully drafted to comply with Maltese law, including the Employment and Industrial Relations Act and Competition Act, as well as relevant EU regulations. It typically specifies restricted activities, duration, geographical scope, and enforcement mechanisms while ensuring restrictions are reasonable and proportionate. This document is commonly used during employment, contractor relationships, business sales, or partnership arrangements, where protecting business interests is paramount.
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1. Parties: Identifies and defines the contracting parties (typically employer/company and employee/contractor)
2. Background: Establishes the context and purpose of the agreement, including the business relationship between the parties
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Period', 'Restricted Persons', and 'Business Activities'
4. Non-Solicitation of Customers: Details restrictions on approaching or dealing with customers or clients of the protected business
5. Non-Solicitation of Employees: Outlines restrictions on soliciting or hiring employees of the protected business
6. Duration and Geographic Scope: Specifies the time period and geographical areas where restrictions apply
7. Acknowledgments: Contains party acknowledgments regarding reasonableness of restrictions and receipt of consideration
8. Remedies: Specifies available remedies in case of breach, including injunctive relief and damages
9. Governing Law and Jurisdiction: Establishes Maltese law as governing law and specifies jurisdiction for disputes
10. General Provisions: Standard clauses including severability, entire agreement, and amendments
1. Non-Solicitation of Suppliers: Additional restrictions regarding suppliers - include when supplier relationships are crucial to business operations
2. Garden Leave: Provisions for paid leave during notice period - include for senior executives or key employees
3. Post-Termination Restrictions: Additional restrictions after employment/engagement ends - include for high-risk relationships
4. Consideration: Specific section detailing consideration provided - include when additional consideration is being provided
5. Survival Clause: Specifies which provisions survive termination - include in complex commercial relationships
6. Assignment Rights: Rights to assign the agreement - include when business sale/transfer is contemplated
1. Schedule 1 - Restricted Customers: List of specific customers covered by non-solicitation provisions
2. Schedule 2 - Restricted Territory: Detailed description of geographical areas where restrictions apply
3. Schedule 3 - Restricted Business Activities: Detailed description of business activities covered by the agreement
4. Appendix A - Consideration Details: Details of any specific consideration provided for the restrictions
5. Appendix B - Acknowledgment Form: Form for periodic acknowledgment of ongoing compliance with restrictions
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