Document background
The Non-Compete in Severance Agreement is a critical document used in Australian employment contexts when an employer wishes to protect their business interests while providing severance benefits to a departing employee. This document type is particularly relevant in situations involving senior executives, key personnel, or employees with access to sensitive information or important client relationships. It combines the elements of a standard severance agreement with specific non-compete provisions that restrict the employee's ability to compete with the former employer for a defined period and within a specified geographical area. The agreement must be carefully drafted to ensure enforceability under Australian law, considering both federal legislation (such as the Competition and Consumer Act 2010) and state-specific requirements. The document typically includes detailed provisions about severance compensation, which serves as consideration for the non-compete obligations.
