Current Non Compete Agreement Template for Philippines

A Current Non-Compete Agreement is essential for businesses operating in the Philippines who need to protect their legitimate business interests, trade secrets, and competitive advantage. This document is typically used when onboarding key employees or updating existing employment terms for staff members who have access to sensitive information, strategic plans, or valuable client relationships. The agreement must comply with Philippine labor laws and constitutional principles, which require that any restrictions on an employee's right to work must be reasonable in terms of duration, geographic scope, and prohibited activities. The document includes specific provisions on non-competition, non-solicitation, and confidentiality obligations, along with clear definitions of restricted activities and territories. Given the Philippine courts' careful scrutiny of such agreements, the terms must be drafted to demonstrate clear business necessity and reasonable limitations to be enforceable.

1. Parties: Identifies and provides full details of the employer and employee entering into the agreement

2. Background: Explains the context of the agreement, including the employee's role and access to confidential information

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

4. Non-Compete Obligations: Details the specific restrictions on competitive activities, including duration and geographic scope

5. Non-Solicitation of Customers: Prohibits the solicitation of company customers or clients during and after employment

6. Non-Solicitation of Employees: Restricts the recruitment or hiring of company employees

7. Confidentiality Obligations: Specifies the employee's obligations regarding confidential information

8. Acknowledgment of Reasonableness: Employee's acknowledgment that restrictions are reasonable and necessary

9. Duration and Geographic Scope: Specifies the time period and geographical areas where restrictions apply

10. Consideration: States the consideration provided in exchange for the non-compete obligations

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

12. Governing Law: Specifies Philippine law as governing law and relevant jurisdiction

13. Severability: Allows rest of agreement to remain valid if any provision is found unenforceable

14. Entire Agreement: Confirms this document represents the complete agreement between parties