The Employee Covenant Agreement serves as a critical legal instrument in New Zealand employment relationships, particularly for roles involving access to confidential information, client relationships, or intellectual property. This document is typically implemented either at the commencement of employment or during employment when an employee moves into a sensitive role. It encompasses various protective measures including confidentiality obligations, intellectual property assignments, non-competition restrictions, and non-solicitation provisions, all drafted in accordance with New Zealand employment law principles. The agreement must balance the employer's need to protect legitimate business interests with the employee's right to work and earn a living, ensuring all restrictions are reasonable and enforceable under New Zealand jurisdiction.
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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 purpose of the covenants
3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Intellectual Property', 'Restricted Business', etc.
4. Duration and Application: Period during which the covenants apply, both during and after employment
5. Confidentiality Obligations: Details of confidentiality requirements, including definition of confidential information and handling procedures
6. Intellectual Property Rights: Assignment and protection of IP created during employment, including inventions and works
7. Non-Competition Covenant: Restrictions on working with competitors, including geographic and temporal limits
8. Non-Solicitation of Customers: Restrictions on approaching or dealing with company customers
9. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees
10. Return of Company Property: Obligations regarding return of company assets and information upon termination
11. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
12. General Provisions: Standard clauses including severability, modification, governing law, and entire agreement
13. Execution: Signature blocks and attestation
1. Garden Leave: Provisions for paid leave during notice period - include for senior roles or when significant customer relationships exist
2. International Operations: Additional provisions for employees working across multiple jurisdictions
3. Social Media and Digital Assets: Specific provisions regarding social media accounts and digital content - include for marketing/social media roles
4. Industry-Specific Restrictions: Additional restrictions specific to particular industries (e.g., financial services, technology)
5. Training Repayment: Provisions for repayment of training costs - include when significant training investment is made
6. Client Team Restrictions: Specific provisions preventing the employee from taking entire client teams - include for senior client-facing roles
7. Acknowledgments: Employee acknowledgments of reasonableness of restrictions - recommended for enhanced enforceability
1. Schedule 1 - Confidential Information: Detailed list of types of confidential information specific to the role
2. Schedule 2 - Restricted Customers: List of specific customers or customer categories covered by restrictions
3. Schedule 3 - Restricted Territory: Detailed description of geographic areas covered by non-compete provisions
4. Schedule 4 - Intellectual Property: List of existing IP and specific IP provisions relevant to the role
5. Schedule 5 - Company Property: Comprehensive list of company property and assets in employee's possession
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Employee Covenant Agreement
A New Zealand-governed agreement establishing post-employment obligations including confidentiality, IP rights, and non-compete provisions between employer and employee.
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