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Letter Of Non Solicitation

Letter Of Non Solicitation Template for South Africa

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Key Requirements PROMPT example:

Letter Of Non Solicitation

"I need a Letter of Non-Solicitation for a departing senior consultant who has worked with our top financial services clients for the past 5 years; the letter should prevent him from soliciting our clients and employees for 12 months after his departure date of March 1, 2025."

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Document background
The Letter of Non-Solicitation serves as a crucial business protection tool in South African commercial relationships. It is typically used when an employee, contractor, or business partner is leaving or entering into a new business relationship, where there is a legitimate need to protect established business relationships and prevent unfair competition. The document must comply with South African legislation, including the Competition Act 89 of 1998 and the Labour Relations Act 66 of 1995, while respecting constitutional rights to trade freely. A Letter of Non-Solicitation commonly includes specific terms about duration, geographical limitations, and the scope of prohibited solicitation activities, and must be reasonable to be enforceable under South African law. It's particularly relevant in situations involving senior employees, key client relationships, or access to confidential business information.
Suggested Sections

1. Sender and Recipient Details: Full names, addresses, and positions of both the sending and receiving parties

2. Date: The effective date of the letter

3. Subject Line: Clear identification that this is a Letter of Non-Solicitation

4. Reference to Employment/Business Relationship: Brief context of the relationship between parties

5. Non-Solicitation Obligations: Clear statement of what activities are prohibited, including solicitation of employees, customers, or both

6. Duration: Specific timeframe for which the non-solicitation obligations will remain in effect

7. Geographic Scope: Clear definition of the geographical area where the restrictions apply

8. Acknowledgment: Statement confirming understanding and voluntary acceptance of the terms

9. Signature Block: Space for signatures, names, and dates for both parties

Optional Sections

1. Reference to Existing Agreements: Used when the letter supplements or relates to existing employment or business agreements

2. Consideration: Include when specific consideration is being provided in exchange for the non-solicitation commitment

3. Confidentiality Clause: Added when there's a need to protect confidential information related to the non-solicitation obligations

4. Survival Clause: Used when the obligations need to survive the termination of any related agreements

5. Remedies: Include when specific remedies for breach need to be outlined

6. Return of Property: Added when there's a need to address the return of any customer lists or confidential information

Suggested Schedules

1. Schedule A - Protected Customers: List of specific customers or client categories covered by the non-solicitation obligations

2. Schedule B - Protected Employees: List of employee categories or specific positions covered by the non-solicitation obligations

3. Schedule C - Specific Business Activities: Detailed description of prohibited business activities or solicitation methods

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 Industries

Professional Services

Information Technology

Financial Services

Management Consulting

Healthcare

Recruitment

Sales and Marketing

Legal Services

Real Estate

Manufacturing

Retail

Technology

Education

Insurance

Relevant Teams

Human Resources

Legal

Sales

Business Development

Client Relations

Executive Leadership

Operations

Account Management

Consulting

Project Management

Finance

Information Technology

Marketing

Business Strategy

Customer Success

Relevant Roles

Chief Executive Officer

Managing Director

Sales Manager

Business Development Manager

Account Executive

Human Resources Director

Senior Consultant

Department Head

Regional Manager

Client Relations Manager

Project Manager

Technical Lead

Financial Controller

Operations Manager

Partnership Partner

Senior Associate

Business Unit Head

Vice President

Executive Director

Sales Director

Industries
Constitution of South Africa, 1996: Particularly Section 22 which guarantees freedom of trade, occupation and profession. Any non-solicitation agreement must not unreasonably restrict these constitutional rights.
Competition Act 89 of 1998: Regulates anti-competitive practices and ensures that non-solicitation agreements do not constitute unfair competition restrictions.
Labour Relations Act 66 of 1995: Governs employment relationships and ensures that non-solicitation agreements are fair and reasonable within the employment context.
Common Law Principles on Restraint of Trade: South African common law principles that determine the reasonableness and enforceability of restrictive covenants, including geographical scope and duration.
Protection of Personal Information Act (POPIA) 4 of 2013: Relevant when the non-solicitation agreement involves customer lists or employee information, ensuring proper handling of personal information.
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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