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Law Firm Non Compete Agreement

Law Firm Non Compete Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Law Firm Non Compete Agreement

"I need a Law Firm Non-Compete Agreement for a senior partner in our Riyadh office who handles high-net-worth clients in Islamic banking, with special focus on protecting our client relationships and confidential information for a 2-year restricted period starting March 2025."

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Document background
The Law Firm Non Compete Agreement is a crucial document for legal practices operating in Saudi Arabia seeking to protect their business interests, client relationships, and confidential information. This agreement is typically implemented when hiring senior lawyers, partners, or key legal professionals who will have access to sensitive client information and business strategies. It must strictly comply with Saudi Labor Law, particularly Article 83, which requires that non-compete restrictions be limited in duration, geographic scope, and nature of work, and must be proportional to the employer's legitimate business interests. The agreement should also align with Sharia principles and Saudi Bar Association regulations regarding professional conduct. It typically includes detailed provisions on restricted activities, client non-solicitation, confidentiality obligations, and appropriate consideration for the restrictions imposed.
Suggested Sections

1. Parties: Identification of the law firm and the employee, including their full legal names, addresses, and relevant registration/license numbers

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 Area', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited activities, geographic limitations, and duration of restrictions

5. Consideration: Specific benefits or compensation provided to the employee in exchange for the non-compete obligations

6. Confidentiality Obligations: Provisions regarding the protection of confidential information, client data, and trade secrets

7. Client Non-Solicitation: Restrictions on soliciting or dealing with clients of the law firm

8. Employee Non-Solicitation: Restrictions on soliciting or hiring other employees of the law firm

9. Compliance with Laws: Confirmation of compliance with Saudi Labor Law and Sharia principles

10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

12. Signature Block: Execution provisions including date and signatures

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period to protect firm interests, used when employee is senior or has significant client relationships

2. International Practice Restrictions: Additional restrictions for lawyers working with international clients or in cross-border practice, used when applicable

3. Training Compensation: Provisions for recovering training costs if employee leaves within specified period, used when firm has invested significantly in employee development

4. Moral Rights: Provisions relating to intellectual property created during employment, used for lawyers involved in academic or publishing activities

5. Severability: Provisions ensuring rest of agreement remains valid if certain parts are found unenforceable, recommended for complex agreements

6. Notice Requirements: Detailed procedures for giving notices under the agreement, used in more formal arrangements

Suggested Schedules

1. Schedule 1: Restricted Clients: List of specific clients or client categories covered by non-solicitation provisions

2. Schedule 2: Restricted Territory: Detailed description and/or maps of geographic areas covered by restrictions

3. Schedule 3: Competing Firms: List of specific competing law firms or types of practices considered competitive

4. Schedule 4: Confidential Information: Detailed categorization of information considered confidential

5. Appendix A: Compensation Details: Specific details of any compensation provided in consideration for the non-compete obligations

6. Appendix B: Compliance Certificate: Form of certificate to be signed by employee confirming compliance upon departure

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Legal Services

Professional Services

Consulting

Corporate Services

Dispute Resolution

Financial Services

Government and Public Sector

Islamic Finance

Relevant Teams

Legal Operations

Corporate Law

Litigation

Islamic Finance

Mergers and Acquisitions

Dispute Resolution

Employment Law

Real Estate

Intellectual Property

Compliance

Business Development

Client Relations

Knowledge Management

Practice Development

Relevant Roles

Managing Partner

Senior Partner

Partner

Associate

Senior Associate

Legal Counsel

Head of Practice

Department Head

Practice Group Leader

Senior Lawyer

Legal Director

Of Counsel

Junior Associate

Legal Consultant

Islamic Law Specialist

Industries
Saudi Labor Law (Royal Decree No. M/51): Primary legislation governing employment relationships in Saudi Arabia, particularly Article 83 which specifically addresses non-compete clauses and their enforceability conditions
Saudi Code of Law Practice (Royal Decree No. M/38): Regulates the practice of law in Saudi Arabia, including provisions about professional conduct and obligations of lawyers
Saudi Bar Association Regulations: Professional regulations governing lawyers' conduct, including rules about client confidentiality and professional competition
Anti-Commercial Fraud Law (Royal Decree No. M/19): Relevant for provisions regarding unfair competition and protection of business interests
Law of Commercial Courts (Royal Decree No. M/93): Relevant for enforcement of commercial agreements and dispute resolution mechanisms
Sharia Law Principles: Fundamental Islamic law principles that govern all contracts and agreements in Saudi Arabia, ensuring compliance with Islamic ethical and legal standards
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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