The Non-Compete Non-Disclosure Agreement (NCNDA) is essential for businesses operating in the Philippines seeking to protect their confidential information and competitive position. This document is particularly crucial when engaging with employees, contractors, or business partners who will have access to sensitive business information or could potentially compete with the business. The agreement must comply with Philippine legislation, including the Data Privacy Act of 2012, the Intellectual Property Code, and the Civil Code, while balancing the protection of legitimate business interests with individual rights to work. It combines robust confidentiality provisions with reasonable non-compete restrictions, typically including geographic and time limitations to ensure enforceability under Philippine law. The agreement is commonly used in employment, consulting, business partnerships, and corporate transactions where protection of trade secrets and prevention of unfair competition are paramount.
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1. Parties: Identifies and defines the parties entering into the agreement
2. Background: Explains 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', 'Competing Business', and 'Restricted Period'
4. Confidentiality Obligations: Details the obligations regarding the protection, non-disclosure, and non-use of confidential information
5. Non-Compete Provisions: Specifies the scope, duration, and geographic limitations of non-compete restrictions
6. Return of Confidential Information: Procedures for returning or destroying confidential information upon request or termination
7. Duration and Survival: Specifies the term of the agreement and which provisions survive termination
8. Breach and Remedies: Outlines the consequences of breach and available remedies including injunctive relief
9. General Provisions: Standard clauses including governing law, jurisdiction, amendment process, and severability
1. Non-Solicitation: Prohibits solicitation of employees, customers, or suppliers - include when protecting business relationships is crucial
2. Assignment and Succession: Addresses the transferability of rights and obligations - important for corporate transactions
3. Security Measures: Specifies required security protocols for protecting confidential information - include for technology-heavy relationships
4. Audit Rights: Grants right to audit compliance with confidentiality obligations - important for highly sensitive information
5. Independent Contractor Relationship: Clarifies that the agreement does not create an employment relationship - include for contractor relationships
6. Data Privacy Compliance: Specific provisions ensuring compliance with Philippine Data Privacy Act - include when personal data is involved
1. Schedule A - Confidential Information: Detailed list or categories of information considered confidential under the agreement
2. Schedule B - Restricted Activities: Specific description of prohibited competitive activities and business areas
3. Schedule C - Geographic Scope: Detailed definition of the geographic areas where non-compete restrictions apply
4. Schedule D - Authorized Representatives: List of individuals authorized to receive or handle confidential information
5. Schedule E - Security Protocols: Detailed security measures and procedures for handling confidential information
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