The Letter of Non-Solicitation serves as a crucial business protection tool in the Malaysian corporate landscape, commonly used when establishing or terminating business relationships. This document is particularly relevant when there's a risk of one party attempting to poach employees, clients, or business opportunities from another. The letter must comply with Malaysian legal requirements, including the Employment Act 1955, Contracts Act 1950, and Competition Act 2010, ensuring that the non-solicitation provisions are reasonable and enforceable. It typically includes specific details about prohibited activities, duration of restrictions, geographical limitations, and consequences of breach, while being carefully drafted to balance business protection with fair competition principles.
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1. Letter Header: Formal business letter header including date, sender's address, recipient's address, and reference number
2. Salutation: Formal greeting to the recipient
3. Subject Line: Clear identification of the letter's purpose as a Non-Solicitation undertaking
4. Introduction: Context of the letter, including the relationship between parties and reason for the non-solicitation requirement
5. Non-Solicitation Obligations: Clear statement of the specific activities that are prohibited, including solicitation of employees, clients, or both
6. Duration: Specific time period for which the non-solicitation obligations will remain in effect
7. Geographic Scope: Clear definition of the territorial boundaries where the non-solicitation obligations apply
8. Acknowledgment: Statement confirming understanding and voluntary acceptance of the obligations
9. Signature Block: Space for signature, name, and title of both parties
1. Existing Relationships Clause: Section addressing any pre-existing relationships with clients or employees that may be exempted from the non-solicitation obligations
2. Permitted Activities: Section clarifying specific activities that are allowed despite the non-solicitation obligations
3. Confidentiality Clause: Additional provisions regarding the confidentiality of information obtained during the business relationship
4. Remedies: Section outlining specific remedies or consequences in case of breach
5. Return of Property: Requirements regarding the return of any company property or confidential information
6. Survival Clause: Section specifying which obligations continue after the termination of the primary business relationship
1. Schedule A - Protected Clients: List of specific clients or customer categories covered by the non-solicitation obligations
2. Schedule B - Protected Employees: List of employee categories or positions covered by the non-solicitation obligations
3. Schedule C - Territorial Map: Visual representation or detailed description of the geographic area where the non-solicitation applies
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