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Non Compete Contract

Non Compete Contract Template for Malaysia

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Key Requirements PROMPT example:

Non Compete Contract

"I need a Non Compete Contract for a senior software engineer joining my technology company in Kuala Lumpur, with restrictions covering Malaysia and Singapore for 24 months after employment termination, protecting our proprietary software development methods and client relationships."

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Document background
The Non-Compete Contract is a crucial legal instrument used in Malaysian business contexts to protect legitimate business interests, trade secrets, and competitive advantage. This document is typically employed when hiring senior executives, during business sales, in partnership arrangements, or when engaging key employees who will have access to sensitive business information. The agreement must carefully balance the protection of business interests with Malaysian legal requirements, particularly regarding reasonableness of restrictions and employee rights. Key considerations include the scope of restricted activities, geographical limitations, duration, and adequate consideration, all of which must comply with Malaysian contract law principles and competition regulations. The document becomes especially relevant in industries with high intellectual property value or where customer relationships are crucial to business success.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and legitimate business interests being protected

3. Definitions: Key terms used throughout the agreement, including 'Competitive Business', 'Restricted Territory', 'Confidential Information', etc.

4. Duration and Term: Specific period during which the non-compete obligations will be effective

5. Scope of Restrictions: Detailed description of prohibited competitive activities and business areas

6. Geographical Limitations: Clear definition of the geographical areas where restrictions apply

7. Consideration: Details of compensation or benefits provided in exchange for the non-compete obligations

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

9. Acknowledgments: Party acknowledgments regarding reasonableness of restrictions and receipt of consideration

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

11. General Provisions: Standard contract clauses including governing law, jurisdiction, and entire agreement

Optional Sections

1. Garden Leave: Optional section for employment contexts, defining terms of paid non-work period after termination

2. Non-Solicitation: Additional restrictions on soliciting customers, employees, or suppliers - used when broader protection is needed

3. Training and Development Costs: Section dealing with repayment of training costs - relevant when significant training investment is involved

4. Industry-Specific Restrictions: Additional restrictions specific to particular industries or professions

5. Severability and Modification: Detailed provisions for court modification of unreasonable terms - useful in jurisdictions with strict enforcement

6. Assignment Rights: Terms regarding the right to assign the agreement - relevant in business sale contexts

Suggested Schedules

1. Schedule 1: Restricted Territory: Detailed maps or lists of geographical areas where restrictions apply

2. Schedule 2: Competitive Business Description: Detailed description of prohibited business activities and competitor definitions

3. Schedule 3: Consideration Details: Breakdown of compensation, including payment terms and schedules

4. Appendix A: Confidential Information: Specific categories of confidential information covered by the agreement

5. Appendix B: Key Customers and Clients: List of specific customers/clients covered by non-solicitation provisions if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions

























Clauses
























Relevant Industries

Technology

Healthcare

Financial Services

Professional Services

Manufacturing

Retail

Telecommunications

Biotechnology

Education

Management Consulting

Software Development

Pharmaceuticals

Engineering

Research and Development

E-commerce

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Research and Development

Product Development

Information Technology

Business Development

Operations

Finance

Strategic Planning

Customer Relations

Engineering

Marketing

Intellectual Property

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Business Development Manager

Research Scientist

Product Manager

Technical Lead

Regional Manager

Management Consultant

Financial Controller

Senior Account Manager

Head of Operations

Chief Marketing Officer

Department Head

Principal Engineer

Managing Director

Partner

Vice President

Senior Consultant

Industries







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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