Document background
This Noncompete Agreement is a crucial legal document used by businesses operating in Saudi Arabia to protect their legitimate business interests, confidential information, and competitive advantage. It is typically implemented when onboarding new employees or during significant role changes where employees gain access to sensitive information or strategic business knowledge. The agreement must strictly comply with Saudi Labor Law, particularly Article 83, which requires that non-compete restrictions be reasonable in terms of time (typically not exceeding 2 years), geographical scope, and type of work. The document includes specific provisions about restricted activities, consideration for the employee, and enforcement mechanisms, all structured to be compliant with both Saudi civil law and Sharia principles. This agreement is especially relevant in the context of Saudi Arabia's growing knowledge economy and the increasing mobility of skilled workforce in the region.
