Document background
The Not To Compete Agreement is a crucial document used in Philippine business relationships to protect companies from unfair competition by former employees or contractors. This agreement becomes particularly important in situations where individuals have access to confidential information, trade secrets, customer relationships, or specialized knowledge that could be harmful to the business if used by competitors. The document must comply with Philippine labor laws and jurisprudence, which generally uphold non-compete provisions when they are reasonable in scope, duration, and geographic coverage. It should include clear terms about restricted activities, temporal and geographical limitations, and consideration provided in exchange for the restrictions. The agreement is commonly used when hiring senior executives, technical specialists, sales professionals, or other key personnel who could pose a competitive threat if they join competitor organizations.
