Not To Compete Agreement Template for Saudi Arabia

The Not To Compete Agreement is a crucial document for businesses operating in Saudi Arabia seeking to protect their legitimate interests, trade secrets, and competitive advantage. It is typically used when onboarding senior executives, technical specialists, or employees with access to sensitive information or important client relationships. The agreement must be carefully drafted to comply with Saudi Labor Law, particularly Article 83, which requires specific conditions for enforceability including reasonable restrictions in time and geography. The document should be used as part of a comprehensive employment strategy, particularly in situations where employees will have access to confidential information, specialized training, or valuable customer relationships. The agreement needs to balance the employer's protection needs with employee rights under Saudi law and Sharia principles.

1. Parties: Identification of the employer and employee, including full legal names and addresses

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

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

4. Scope of Restrictions: Detailed description of prohibited activities and competition restrictions

5. Duration of Restrictions: Time period for which the non-compete obligations will apply

6. Geographic Limitations: Specific geographic areas where the restrictions apply

7. Consideration: Compensation or benefits provided to the employee in exchange for the non-compete obligations

8. Confidentiality Obligations: Requirements regarding the protection of confidential information and trade secrets

9. Acknowledgments: Employee's confirmation of understanding and agreement to the restrictions

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 relevant courts for dispute resolution

12. Execution: Signature blocks and execution requirements