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Compensation For Signing A Non Compete Agreement Template for Malaysia

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Key Requirements PROMPT example:

Compensation For Signing A Non Compete Agreement

"I need a Compensation For Signing A Non Compete Agreement for a senior software developer in Malaysia who will be leaving our fintech company in March 2025, focusing on protecting our proprietary trading algorithms and preventing work with competitors in Southeast Asia for 12 months."

Document background
The Compensation For Signing A Non Compete Agreement is a crucial document used when an employer wishes to protect their legitimate business interests by restricting an employee's post-employment activities while providing fair compensation for such restrictions. This agreement is particularly relevant in Malaysia where non-compete clauses must be reasonable in scope and supported by adequate consideration to be enforceable. The document typically comes into play during new employment offers, promotions, or employment terminations where the employee has access to sensitive information or valuable client relationships. It details the specific restrictions, their duration and geographical scope, and outlines a clear compensation structure that makes the non-compete obligations legally binding under Malaysian law.
Suggested Sections

1. Parties: Identifies and provides full details of the parties entering into the agreement - typically the employer and the employee

2. Background: Sets out the context of the agreement, including the employee's role and access to confidential information/trade secrets

3. Definitions: Defines key terms used throughout the agreement, including 'Restricted Business', 'Territory', 'Confidential Information', etc.

4. Non-Compete Obligations: Details the specific restrictions including duration, geographical scope, and prohibited activities

5. Compensation: Specifies the amount, timing, and method of compensation payment for the non-compete obligations

6. Payment Terms: Details the schedule of payments, including any conditions or prerequisites for payment

7. Duration: Specifies the time period during which the non-compete obligations will be in effect

8. Acknowledgments: Employee's acknowledgment that restrictions are reasonable and compensation is adequate

9. Breach and Remedies: Outlines consequences of breach and available remedies

10. Governing Law: Specifies that Malaysian law governs the agreement

Optional Sections

1. Garden Leave: Include when the agreement incorporates a garden leave period during which the employee remains employed but does not work

2. Non-Solicitation: Include when additional restrictions on soliciting employees, customers, or suppliers are needed

3. Confidentiality: Include when separate confidentiality obligations need to be specified beyond standard non-compete

4. Tax Provisions: Include when specific tax treatment needs to be addressed or clarified

5. Severability: Include when there's a need to ensure partial enforcement if some provisions are found invalid

6. Return of Property: Include when there are specific company properties or documents to be returned

Suggested Schedules

1. Schedule 1 - Compensation Details: Detailed breakdown of compensation amount, payment schedule, and any conditions

2. Schedule 2 - Restricted Territory: Detailed description or maps of the geographical area covered by restrictions

3. Schedule 3 - Restricted Business Activities: Comprehensive list of specific business activities covered by the non-compete

4. Appendix A - Confidential Information: List of specific confidential information and trade secrets the employee has had access to

5. Appendix B - Previous Agreements: List of any relevant previous agreements between the parties that may affect this agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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