Employee Non Compete Agreement for Nigeria

Employee Non Compete Agreement Template for Nigeria

A legally binding agreement governed by Nigerian law that restricts an employee from engaging in competitive activities during and after their employment. The agreement outlines specific limitations on working for competitors, soliciting customers or employees, and using confidential information, while ensuring compliance with Nigerian constitutional rights and labor laws. The document includes detailed provisions on geographical scope, duration of restrictions, and remedies for breach, structured to meet the reasonableness requirements under Nigerian common law principles and the Federal Competition and Consumer Protection Act 2018.

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What is a Employee Non Compete Agreement?

The Employee Non-Compete Agreement is a critical document used in Nigerian business relationships to protect legitimate business interests while respecting employee rights under Nigerian law. It is typically implemented when onboarding senior employees or those with access to sensitive information, trade secrets, or valuable client relationships. The agreement must be carefully drafted to ensure enforceability under Nigerian law, including the Constitution, Labour Act, and Federal Competition and Consumer Protection Act 2018. Key considerations include reasonable temporal and geographical restrictions, clear definition of prohibited activities, and appropriate consideration for the employee. The document should balance the employer's need to protect business interests with the employee's constitutional right to earn a living, making it particularly important in sectors with high competition or valuable intellectual property.

What sections should be included in a Employee Non Compete Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, including the employee's role and reason for the non-compete provisions

3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Period', and 'Restricted Territory'

4. Scope of Employment: Description of employee's position, duties, and access to confidential information

5. Non-Compete Obligations: Core restrictions on competing activities, including duration and geographical limitations

6. Non-Solicitation of Customers: Restrictions on approaching or dealing with company customers

7. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees

8. Confidentiality Obligations: Protection of company's confidential information and trade secrets

9. Duration and Territory: Specific timeframe and geographical area of restrictions

10. Consideration: Benefits or compensation provided to employee in exchange for these restrictions

11. Acknowledgments: Employee's confirmation of understanding and agreement to terms

12. Remedies: Available legal remedies in case of breach, including injunctive relief

13. Governing Law: Specification of Nigerian law as governing law

14. Severability: Provision for survival of remaining clauses if any clause is found invalid

15. Entire Agreement: Confirmation that this document represents the complete agreement between parties

What sections are optional to include in a Employee Non Compete Agreement?

1. Garden Leave: Optional provision for paid leave during notice period to protect business interests

2. Post-Employment Cooperation: Terms for employee's assistance in transition or pending matters after employment

3. Return of Company Property: Procedures for returning company assets and information upon termination

4. Alternative Dispute Resolution: Procedures for resolving disputes through mediation or arbitration before court action

5. Survival of Obligations: Specification of which obligations continue after employment ends

6. Assignment Rights: Terms regarding the company's right to assign the agreement in case of business sale or restructuring

What schedules should be included in a Employee Non Compete Agreement?

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions

2. Schedule 2 - Competing Businesses: List of specific competitors or types of businesses considered competitive

3. Schedule 3 - Confidential Information: Detailed categorization of protected confidential information

4. Schedule 4 - Employee Benefits: Details of any special benefits or compensation provided as consideration

5. Appendix A - Acknowledgment Form: Separate signature page confirming employee's understanding and acceptance

Authors

Alex Denne

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

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Technology

Financial Services

Manufacturing

Professional Services

Healthcare

Telecommunications

Oil and Gas

Fast-Moving Consumer Goods

Pharmaceuticals

Management Consulting

Banking

Information Technology

Research and Development

Retail

Relevant Teams

Legal

Human Resources

Executive Leadership

Sales

Research and Development

Product Development

Business Development

Information Technology

Operations

Finance

Strategic Planning

Client Services

Marketing

Engineering

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Business Development Manager

Research Scientist

Product Manager

Senior Account Manager

Technical Lead

Operations Director

Regional Manager

Head of Marketing

Chief Financial Officer

Senior Consultant

Department Head

Vice President

Managing Director

Key Account Manager

Technical Architect

Senior Research Developer

Industries
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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