Document background
The Non-Compete Letter is a crucial business document used in New Zealand when an organization needs to protect its legitimate business interests from potential competitive activities by departing employees or contractors. This document is particularly relevant when dealing with employees who have access to confidential information, client relationships, or trade secrets. The letter must comply with New Zealand employment law principles, which require that any restraint of trade must be reasonable in scope, duration, and geographical reach. Typically used during senior appointments, business sales, or when engaging key personnel, the Non-Compete Letter outlines specific restrictions, their duration, geographical boundaries, and the consideration provided in exchange for these restrictions. It serves as a vital tool for businesses to maintain competitive advantage while balancing the rights of individuals to pursue their careers.
