Non Compete Letter Template for Philippines

The Non-Compete Letter is a crucial business document used in the Philippines when an organization needs to protect its legitimate business interests by preventing certain individuals from engaging in competitive activities. This document is commonly implemented during employment transitions, business sales, or contractor engagements where the restricted party has had access to sensitive information or strategic knowledge. The letter must comply with Philippine legal requirements, which mandate that non-compete restrictions be reasonable in duration, geographic scope, and scope of prohibited activities. It should clearly define the restrictions, their justification, and any compensation provided in exchange. The document is particularly relevant in today's dynamic business environment where employee mobility and access to competitive information are increasingly common concerns.

1. Letter Header: Includes date, recipient's name, position, and complete address

2. Subject Line: Clear indication that this is a Non-Compete Letter

3. Opening Paragraph: References employment relationship or business relationship context

4. Non-Compete Obligations: Clear statement of specific competitive activities that are prohibited

5. Geographic Scope: Definition of the geographic area where restrictions apply

6. Duration: Specific timeframe for which the non-compete obligations will be in effect

7. Consideration: Statement of what the individual receives in exchange for these restrictions

8. Acknowledgment: Confirmation that the recipient understands and accepts the terms

9. Closing and Signatures: Formal closing, signature blocks for both parties