A Non-Compete Agreement is crucial in Australian business contexts where protecting competitive advantages and confidential information is essential. This document is commonly used in employment relationships, business sales, partnership dissolutions, and contractor engagements. The agreement must be carefully drafted to comply with Australian federal and state legislation, including the Competition and Consumer Act 2010 and relevant state-specific restraint of trade laws. It typically includes specific provisions defining restricted activities, geographic scope, duration, and consideration provided. The agreement balances the need to protect legitimate business interests against public policy concerns about restraint of trade. Common applications include protecting client relationships, confidential information, and intellectual property when key employees depart, businesses are sold, or professional relationships terminate.

1. Parties: Identifies all parties to the agreement, including full legal names and addresses

2. Background: Outlines the context of the agreement, including the business relationship between the parties and reason for the non-compete

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

4. Scope of Non-Compete: Details the specific activities and business areas that are restricted

5. Duration: Specifies the time period for which the non-compete obligations will apply

6. Geographic Limitations: Defines the territorial scope of the restrictions

7. Consideration: Specifies the consideration provided in exchange for the non-compete obligations

8. Exceptions and Permitted Activities: Lists any specific exceptions or activities that are permitted despite the general restrictions

9. Acknowledgments: Contains party acknowledgments regarding reasonableness of restrictions and receipt of independent legal advice

10. Remedies: Outlines available remedies in case of breach, including injunctive relief

11. General Provisions: Standard boilerplate clauses including governing law, severability, and entire agreement