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NDA Non Solicitation

NDA Non Solicitation Template for South Africa

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Key Requirements PROMPT example:

NDA Non Solicitation

"I need an NDA Non Solicitation agreement to protect our proprietary software technology and prevent our developers from being poached by a potential investor during our upcoming funding round, which starts March 2025."

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Document background
This NDA Non Solicitation agreement is essential for businesses operating in South Africa that need to protect both their confidential information and their business relationships. The document is typically used when parties are entering into business discussions, negotiations, or partnerships where sensitive information will be shared, and there's a need to prevent the receiving party from using that information to poach employees, customers, or suppliers. It's particularly relevant in today's competitive South African market where employee mobility and business relationships are crucial assets. The agreement must be carefully drafted to comply with South African law, including the Constitution's protection of freedom of trade, the Protection of Personal Information Act (POPIA), and common law principles regarding restraint of trade. The document typically includes detailed provisions on what constitutes confidential information, the scope of non-solicitation restrictions, and the duration of these obligations.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including their full legal names, registration numbers (if applicable), and physical addresses

2. Background: Context of the agreement, including the nature of the business relationship and purpose of sharing confidential information

3. Definitions: Detailed definitions of key terms including 'Confidential Information', 'Permitted Purpose', 'Representatives', and 'Solicitation'

4. Confidentiality Obligations: Core obligations regarding the protection, use, and non-disclosure of confidential information

5. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to employees, advisors, and as required by law

6. Non-Solicitation Provisions: Restrictions on soliciting employees, contractors, customers, or suppliers of the disclosing party

7. Duration: Term of both confidentiality obligations and non-solicitation restrictions

8. Return or Destruction of Confidential Information: Obligations regarding the handling of confidential information upon termination or request

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

10. General Provisions: Standard contractual terms including governing law, jurisdiction, and entire agreement

Optional Sections

1. Data Protection Compliance: Specific provisions addressing POPIA compliance, necessary when personal information is included in confidential information

2. Intellectual Property Rights: Additional provisions protecting IP rights, needed when confidential information includes patents, trademarks, or other IP

3. Security Measures: Specific security requirements for handling confidential information, important for technical or highly sensitive information

4. Competing Business Restrictions: Additional restrictions on competing business activities, when broader protection is required

5. Audit Rights: Rights to audit compliance with confidentiality obligations, useful for high-risk or regulated industries

6. Insurance Requirements: Obligations to maintain specific insurance coverage, relevant for high-value or high-risk relationships

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant during uncertain times

Suggested Schedules

1. Schedule 1: Specified Confidential Information: Detailed list or categories of information deemed confidential under the agreement

2. Schedule 2: Restricted Persons/Entities: List of specific employees, customers, or suppliers covered by non-solicitation provisions

3. Schedule 3: Permitted Purpose: Detailed description of the permitted use of confidential information

4. Schedule 4: Security Protocols: Specific security measures and protocols for handling confidential information

5. Appendix A: Acknowledgment Form: Form for representatives to acknowledge confidentiality obligations

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
Confidential Information
Permitted Purpose
Disclosing Party
Receiving Party
Representatives
Solicitation
Restricted Period
Protected Persons
Affiliate
Business Day
Effective Date
Group
Intellectual Property Rights
Personal Information
Trade Secrets
Confidential Materials
Protected Business Relationships
Restricted Territory
Security Requirements
Authorized Recipients
Competitors
Material Breach
Protected Customers
Protected Employees
Protected Suppliers
Term
Permitted Disclosures
Related Persons
Proprietary Information
Excluded Information
Relevant Industries

Technology

Financial Services

Manufacturing

Professional Services

Healthcare

Mining

Retail

Telecommunications

Education

Real Estate

Energy

Agriculture

Construction

Media and Entertainment

Biotechnology

Relevant Teams

Legal

Human Resources

Executive Leadership

Business Development

Procurement

Operations

Research and Development

Sales

Information Technology

Finance

Compliance

Strategic Planning

Corporate Development

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Human Resources Director

Business Development Manager

Procurement Manager

Legal Counsel

Commercial Director

Operations Manager

Project Manager

Research and Development Director

Sales Director

Chief Technology Officer

Chief Financial Officer

Strategy Consultant

Compliance Officer

Industries
Constitution of South Africa: Section 22 guarantees freedom of trade, occupation, and profession, which must be considered when drafting non-solicitation clauses to ensure they're not overly restrictive
Protection of Personal Information Act (POPIA) 2013: Governs the processing and protection of personal information, relevant for handling confidential personal data covered by the NDA
Competition Act 89 of 1998: Regulates anti-competitive practices and must be considered when drafting non-solicitation provisions to ensure they don't constitute unfair competition
Employment Equity Act 55 of 1998: Relevant for ensuring non-solicitation provisions don't unfairly discriminate against employees or restrict their employment opportunities
Common Law Principles on Restraint of Trade: South African common law principles governing the reasonableness and enforceability of restraint of trade provisions, including non-solicitation clauses
Protected Disclosures Act 26 of 2000: Provides protection for whistleblowers and must be considered in confidentiality provisions to ensure they don't prevent legitimate disclosures
Electronic Communications and Transactions Act 25 of 2002: Relevant for NDAs covering electronic data and communications, including provisions for electronic signatures and data protection
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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