Non Competition And Non Solicitation Agreement Template for Saudi Arabia

The Non Competition And Non Solicitation Agreement is essential for businesses operating in Saudi Arabia seeking to protect their legitimate interests, trade secrets, and valuable business relationships. This document is typically used when onboarding senior employees, during business acquisitions, or when engaging with key consultants who will have access to sensitive information. The agreement must carefully balance business protection with Saudi Labor Law requirements, which mandate reasonable limitations on duration, geographical scope, and type of restricted activities. It includes specific provisions addressing both non-competition and non-solicitation obligations, tailored to comply with Saudi legal requirements and Sharia principles. The document is particularly relevant in the context of Saudi Arabia's evolving business landscape under Vision 2030, where workforce mobility and business protection have become increasingly important considerations.

1. Parties: Identification of the employer/company and the employee/restricted party

2. Background: Context of the agreement, including the employment relationship or business context

3. Definitions: Key terms including 'Confidential Information', 'Restricted Business', 'Restricted Period', 'Restricted Territory', and 'Restricted Customers'

4. Non-Competition Obligations: Detailed restrictions on competing activities, including scope, duration, and geographical limitations as per Saudi Labor Law

5. Non-Solicitation of Customers: Restrictions on approaching or dealing with customers of the business

6. Non-Solicitation of Employees: Restrictions on soliciting or hiring employees of the business

7. Confidentiality Obligations: Obligations regarding confidential information and trade secrets

8. Duration and Territory: Specific timeframes and geographical scope of restrictions, ensuring compliance with Saudi law limitations

9. Consideration: The compensation or benefit provided in exchange for the restrictions

10. Acknowledgments: Employee's confirmation of reasonableness and understanding of restrictions

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

12. General Provisions: Standard clauses including governing law, severability, and modification