Subcontractor Non Compete Agreement Template for Australia

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Key Requirements PROMPT example:

Subcontractor Non Compete Agreement Template

"I need a Subcontractor Non Compete Agreement Template for my IT consulting firm in Sydney, specifically to protect our client relationships and proprietary software development methodologies when engaging freelance developers and project managers."

Document background

The Subcontractor Non-Compete Agreement Template is essential for Australian businesses engaging subcontractors who will have access to sensitive business information, client relationships, or proprietary knowledge. This document type is particularly crucial in today's competitive business environment where contractor relationships are increasingly common and the protection of business interests is paramount. The template includes provisions that are carefully balanced to be enforceable under Australian law, incorporating reasonable restrictions on post-engagement activities while protecting legitimate business interests. It addresses key areas such as non-competition, non-solicitation, and confidentiality, with flexibility to adapt to specific business needs while maintaining compliance with Australian federal and state legislation, including the Competition and Consumer Act 2010 (Cth) and common law principles regarding restraint of trade.

Suggested Sections

1. Parties: Identifies and provides full details of the principal contractor and subcontractor, including ABN/ACN numbers and registered addresses

2. Background: Explains the context of the agreement, nature of the principal contractor's business, and the subcontractor's engagement

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

4. Interpretation: Sets out rules for interpreting the agreement, including general interpretation principles and hierarchies of documents

5. Non-Compete Obligations: Details the specific activities the subcontractor is restricted from engaging in, including timeframes and geographical limitations

6. Confidentiality Obligations: Specifies the subcontractor's obligations regarding confidential information, trade secrets, and intellectual property

7. Duration and Territory: Clearly defines the time period and geographical area where the restrictions apply

8. Acknowledgments: Subcontractor's acknowledgment that restrictions are reasonable and necessary to protect legitimate business interests

9. Breach and Remedies: Outlines consequences of breach and available remedies, including injunctive relief

10. General Provisions: Standard contract clauses including governing law, notices, severability, and entire agreement

Optional Sections

1. Non-Solicitation of Employees: Additional restrictions on approaching or hiring principal contractor's employees - include when staff poaching is a significant risk

2. Non-Solicitation of Clients: Restrictions on approaching or dealing with principal contractor's clients - include when client relationships are crucial

3. Intellectual Property Rights: Detailed provisions about IP ownership and usage - include when significant IP is involved in the subcontractor's work

4. Assignment and Subcontracting: Provisions regarding the ability to assign rights or further subcontract - include when there's risk of work being delegated

5. Insurance Requirements: Specific insurance obligations - include when work involves significant risks or regulatory requirements

6. Dispute Resolution: Detailed dispute resolution procedures - include when parties prefer specific resolution mechanisms

7. Survival of Obligations: Specifies which obligations continue after termination - include when post-termination obligations are crucial

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific activities, services, or business types that the subcontractor is restricted from engaging in

2. Schedule 2 - Restricted Territory: Detailed description or maps of the geographical areas where restrictions apply

3. Schedule 3 - Confidential Information: Specific list of information types considered confidential under the agreement

4. Schedule 4 - Key Clients: List of specific clients or client categories covered by non-solicitation provisions (if applicable)

5. Appendix A - Deed of Adherence: Template deed for related entities or individuals who need to be bound by the restrictions

6. Appendix B - Compliance Declaration: Template declaration form for subcontractor to periodically confirm compliance with restrictions

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Information Technology

Construction

Professional Services

Management Consulting

Engineering

Healthcare

Financial Services

Mining and Resources

Telecommunications

Digital Services

Research and Development

Manufacturing

Relevant Teams

Legal

Procurement

Human Resources

Operations

Commercial

Risk and Compliance

Senior Management

Project Management Office

Business Development

Contract Administration

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Project Manager

Human Resources Director

Chief Operating Officer

Business Development Manager

Operations Manager

Commercial Manager

Risk Manager

Compliance Officer

General Manager

Chief Executive Officer

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