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The Non-Compete Severance Agreement is a crucial document used in South African business contexts when an employer wishes to ensure protection of their business interests while providing severance benefits to a departing employee. This agreement is particularly relevant in situations involving senior employees, executives, or key personnel who have had access to confidential information, trade secrets, or valuable client relationships. The document must carefully balance the employer's need for protection with the employee's constitutional right to work and trade, as established under South African law. It typically includes detailed provisions on severance payment calculations, duration and scope of non-compete restrictions, and confidentiality obligations, all structured to ensure enforceability under South African common law principles regarding restraint of trade.

1. Parties: Identification of the employer and employee entering into the agreement

2. Background: Context of the employment relationship, reason for termination, and basis for the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Termination of Employment: Details of the employment termination including effective date and general terms

5. Severance Payment: Amount, timing, and conditions of severance payment, including tax considerations

6. Non-Compete Obligations: Specific restrictions on competitive activities, including duration, geographic scope, and prohibited activities

7. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

9. Return of Company Property: Requirements for returning company assets, documents, and data

10. References and Communications: Agreement on how the departure will be communicated and reference provisions

11. General Release: Mutual release of claims between parties

12. Breach and Remedies: Consequences of breaching the agreement and available remedies

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

14. Execution: Signature blocks and execution requirements