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Consulting Non Compete Agreement

Consulting Non Compete Agreement Template for Australia

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Key Requirements PROMPT example:

Consulting Non Compete Agreement

"I need a Consulting Non-Compete Agreement for a technology consulting firm based in Sydney, protecting our AI development methodologies and client relationships, with a 12-month restriction period across Australia and New Zealand, starting from March 2025."

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Document background
This Consulting Non-Compete Agreement is essential for Australian businesses engaging external consultants who will have access to sensitive business information, strategic plans, or valuable client relationships. The document balances the protection of legitimate business interests with the principles of reasonable restraint under Australian law. It typically includes detailed provisions about the scope of consulting services, specific restrictions on post-engagement competitive activities, geographical limitations, and duration of restrictions. The agreement is particularly crucial in situations where consultants gain intimate knowledge of business operations, client relationships, or proprietary methodologies. It must be carefully drafted to ensure enforceability under Australian competition law and restraint of trade principles, with specific consideration given to the reasonableness of restrictions in terms of time, area, and scope.
Suggested Sections

1. Parties: Identification of the contracting parties - the business entity and the consultant

2. Background: Context of the agreement, nature of the consulting relationship, and reason for the non-compete provisions

3. Definitions: Key terms used throughout the agreement including 'Confidential Information', 'Competing Business', 'Territory', and 'Restricted Period'

4. Consulting Services: Description of the consulting services to be provided, including scope, duration, and delivery requirements

5. Non-Compete Obligations: Core restrictions on competing activities, including temporal and geographical limitations

6. Non-Solicitation: Restrictions on soliciting clients, employees, or suppliers of the business

7. Confidentiality: Obligations regarding confidential information acquired during the consulting relationship

8. Consideration: Specific consideration provided for the non-compete obligations (separate from consulting fees)

9. Duration and Territory: Specific timeframes and geographical areas where restrictions apply

10. Reasonableness and Severability: Provisions addressing the reasonableness of restrictions and severability of terms if partially invalid

11. Remedies: Available remedies for breach, including injunctive relief and damages

12. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and amendments

Optional Sections

1. Intellectual Property: Additional provisions regarding ownership and protection of IP created during the consulting relationship

2. Garden Leave: Provisions for paid non-competition period immediately following termination

3. Dispute Resolution: Specific procedures for resolving disputes, including mediation or arbitration requirements

4. Insurance Requirements: Obligations regarding professional indemnity or other insurance coverage

5. Assignment and Succession: Rights and restrictions regarding assignment of the agreement

6. Compliance with Policies: Requirements to comply with specific company policies or procedures

7. Exit Obligations: Specific requirements upon termination of the consulting relationship

Suggested Schedules

1. Schedule 1 - Consulting Services: Detailed description of consulting services, deliverables, and performance metrics

2. Schedule 2 - Restricted Activities: Comprehensive list of specific activities that constitute competing business

3. Schedule 3 - Territory Definition: Detailed description or maps of geographical areas where restrictions apply

4. Schedule 4 - Fee Schedule: Consulting fees and payment terms

5. Schedule 5 - Key Clients: List of specific clients covered by non-solicitation provisions

6. Appendix A - Confidential Information: Detailed categories of information deemed confidential

7. Appendix B - Compliance Policies: Relevant company policies that apply to the consultant

Authors

Alex Denne

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Commencement Date
Company
Consultant
Consulting Services
Competing Business
Confidential Information
Client
Intellectual Property
Material
Non-Compete Period
Personnel
Prohibited Services
Restricted Activities
Restricted Area
Restricted Period
Services
Termination Date
Territory
Trade Secrets
Key Clients
Prospective Clients
Business Relationship
Group Company
Related Body Corporate
Proprietary Information
Business Methods
Strategic Information
Commercial Information
Technical Information
Protected Business
Consideration
Restraint Period
Restraint Area
Competitive Activity
Relevant Industries

Technology and Software

Management Consulting

Professional Services

Financial Services

Healthcare

Engineering

Digital Marketing

Telecommunications

Business Strategy

IT Services

Research and Development

Biotechnology

Education and Training

Data Analytics

Relevant Teams

Legal

Human Resources

Executive Leadership

Procurement

Business Development

Strategy

Operations

Risk Management

Compliance

Contract Administration

Relevant Roles

Chief Executive Officer

Managing Director

Human Resources Director

Legal Counsel

Business Development Manager

Management Consultant

Strategy Consultant

Technical Consultant

Project Manager

Department Head

Practice Leader

Chief Technology Officer

Operations Director

Senior Advisor

Industry Specialist

Subject Matter Expert

Industries
Competition and Consumer Act 2010 (Cth): Federal legislation that governs competition law in Australia, including provisions about anti-competitive conduct and restraint of trade. Particularly relevant for ensuring the non-compete provisions don't breach competition laws.
Independent Contractors Act 2006 (Cth): Federal legislation that governs independent contractor relationships and provides protections for contractors. Essential for establishing the framework of the consulting relationship.
Restraints of Trade Act 1976 (NSW): State legislation (using NSW as example) that provides framework for enforcement of restraint of trade provisions and determines their reasonableness.
Australian Contract Law (Common Law): Common law principles governing contract formation, validity, and enforcement, including principles of consideration, intention to create legal relations, and certainty of terms.
Trade Practices Act provisions (now part of Competition and Consumer Act): Provisions relating to unfair contract terms and unconscionable conduct, particularly relevant for business-to-business contracts.
Corporations Act 2001 (Cth): Federal legislation relevant when dealing with corporate entities and their officers, particularly regarding confidential information and fiduciary duties.
Privacy Act 1988 (Cth): Federal legislation governing the handling of personal and sensitive information, relevant for confidentiality provisions often included alongside non-compete clauses.
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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