Document background
The Severance Pay Non Compete Agreement is a crucial document used when terminating employment relationships where the departing employee has access to sensitive business information, significant client relationships, or valuable intellectual property. This agreement, designed to comply with Australian employment law and common law principles, serves a dual purpose: it provides financial security to the departing employee through structured severance payments while protecting the employer's legitimate business interests through enforceable non-compete provisions. The document is particularly relevant in situations involving senior executives, key sales personnel, or technical experts whose immediate competition could pose a significant risk to the business. It includes detailed provisions for severance calculation, payment terms, restricted activities, geographical limitations, and duration of restrictions, all carefully crafted to meet the reasonableness requirements under Australian law.
