The Contractor Non Solicitation Agreement is essential for businesses operating in Malaysia that engage independent contractors who may develop relationships with employees, clients, or customers during their engagement. This document becomes particularly important in situations where contractors gain access to sensitive business relationships or internal personnel information. It should be implemented in compliance with Malaysian contract law, ensuring reasonable restrictions while protecting legitimate business interests. The agreement typically includes specific provisions about the scope of non-solicitation, duration of restrictions, and geographical limitations, along with clear definitions of prohibited activities and consequences of breach. It's particularly relevant in today's dynamic business environment where contractor relationships are increasingly common across various industries in Malaysia.
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1. Parties: Identifies and defines the contracting parties - typically the company and the contractor
2. Background: Sets out the context of the agreement and the relationship between the parties
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Restricted Period', 'Restricted Persons', etc.
4. Scope of Non-Solicitation: Detailed provisions outlining what activities are prohibited, including client/customer non-solicitation and employee non-solicitation
5. Duration of Restrictions: Specifies the time period during which the non-solicitation obligations will apply
6. Geographic Scope: Defines the geographical areas where the restrictions apply
7. Acknowledgments: Contractor's acknowledgment that the restrictions are reasonable and necessary
8. Exceptions: Permitted activities that do not constitute breach of the non-solicitation obligations
9. Breach and Remedies: Consequences of breaching the agreement and available remedies
10. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes
11. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments
1. Consideration: Required if separate consideration is being provided for the non-solicitation obligations
2. Confidentiality Obligations: Include if confidentiality provisions are not covered in a separate agreement
3. Non-Competition: Optional additional restrictions on competitive activities, if appropriate and enforceable
4. Assignment: Include if either party needs the right to assign the agreement to another entity
5. Survival: Include if certain obligations need to survive termination of the main contractor agreement
6. Alternative Dispute Resolution: Include if parties wish to mandate mediation or arbitration before litigation
7. Notice Provisions: Include detailed notice requirements if formal communications are expected
1. Schedule 1 - Restricted Clients/Customers: List of specific clients or customers covered by the non-solicitation provisions
2. Schedule 2 - Restricted Employees: Categories or list of employees covered by the non-solicitation provisions
3. Schedule 3 - Territorial Scope: Detailed description of geographical areas where restrictions apply
4. Appendix A - Acknowledgment Form: Form for periodic acknowledgment of ongoing compliance with restrictions
5. Appendix B - Exit Procedures: Procedures to be followed at the end of the contractor relationship
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology
Professional Services
Consulting
Financial Services
Healthcare
Manufacturing
Construction
Education
Telecommunications
Business Process Outsourcing
Marketing and Advertising
Software Development
Relevant Teams
Human Resources
Legal
Procurement
Operations
Executive Leadership
Talent Acquisition
Contract Administration
Compliance
Business Development
Relevant Roles
Human Resources Director
Legal Counsel
Procurement Manager
Project Manager
Business Development Manager
Operations Director
Chief Executive Officer
Managing Director
Contractor Manager
Vendor Relations Manager
Chief Legal Officer
Talent Acquisition Manager
Contract Administrator
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