This Non-Compete Agreement After Resignation is designed for use in Saudi Arabia when an employer needs to protect legitimate business interests following an employee's departure. The document is particularly crucial for positions involving access to confidential information, trade secrets, customer relationships, or specialized knowledge. It must comply with Saudi Labor Law, specifically Article 83, which requires that non-compete restrictions be limited in time, place, and type of work to the extent necessary to protect legitimate business interests. The agreement includes specific consideration for the employee, detailed scope of restrictions, and enforcement mechanisms, while adhering to Sharia law principles. It's typically implemented during initial employment or through a separate agreement, becoming effective upon resignation.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the employment relationship and reason for the non-compete agreement
3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', and 'Restricted Territory'
4. Scope of Non-Compete: Detailed description of prohibited activities and competing businesses
5. Duration: Time period for which the non-compete restrictions will apply after employment termination
6. Geographic Limitations: Specific geographical areas where the restrictions apply
7. Consideration: Compensation or benefits provided to the employee in exchange for the non-compete obligations
8. Protection of Confidential Information: Obligations regarding confidential information and trade secrets
9. Acknowledgments: Employee's acknowledgment of the reasonableness of restrictions and receipt of consideration
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 Saudi courts' jurisdiction
12. Execution: Signature blocks and execution requirements
1. Garden Leave: Provisions for paid leave during notice period to protect business interests, used when immediate separation is preferred
2. Non-Solicitation: Additional restrictions on soliciting customers or employees, included when customer relationships are crucial
3. Training Costs Recovery: Provisions for recovering specialized training costs, used when significant training investment is involved
4. Industry-Specific Restrictions: Additional restrictions specific to particular industries or professions
5. International Scope: Additional provisions for international operations, used when business operates across multiple countries
6. Alternative Dispute Resolution: Mediation or arbitration provisions, included when parties prefer alternative to court proceedings
1. Schedule 1 - Restricted Activities: Detailed list of specific activities that the employee is prohibited from engaging in
2. Schedule 2 - Restricted Territory: Detailed maps or lists of geographical areas where restrictions apply
3. Schedule 3 - Competing Businesses: List of specific competitors or types of competing businesses
4. Schedule 4 - Consideration Details: Breakdown of compensation or benefits provided in exchange for non-compete obligations
5. Appendix A - Confidential Information: Detailed description of types of confidential information covered by the agreement
6. Appendix B - Employee's Position and Access: Details of employee's role and access to sensitive information justifying restrictions
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