The Employment Agreement With Non Compete Clause is essential for businesses operating in Pakistan who wish to protect their legitimate business interests while establishing clear employment terms. This document is particularly crucial when hiring employees who will have access to sensitive information, trade secrets, or valuable client relationships. The agreement must comply with Pakistani labor laws, including the Industrial and Commercial Employment Ordinance 1968 and the Contract Act 1872, while ensuring non-compete provisions are reasonable and enforceable under Article 18 of the Constitution of Pakistan. The document combines standard employment terms with carefully crafted restrictions on post-employment competitive activities, making it suitable for key positions where employee knowledge could potentially harm the business if used by competitors.
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1. Parties: Identification of the employer and employee with complete legal names and addresses
2. Background: Brief context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including Confidential Information, Intellectual Property, and Restricted Business
4. Appointment and Term: Position title, employment classification, start date, and term of employment (fixed or indefinite)
5. Duties and Responsibilities: Detailed description of the employee's role, reporting structure, and key responsibilities
6. Place of Work: Primary work location and any mobility requirements
7. Hours of Work: Standard working hours, overtime expectations, and flexible working arrangements if applicable
8. Remuneration: Base salary, payment frequency, and method of payment
9. Benefits: Standard benefits package including leave entitlements, medical benefits, and other perks
10. Probation Period: Length of probation period and conditions for confirmation
11. Non-Compete Obligations: Restrictions on working with competitors during and after employment, including geographic and temporal scope
12. Confidentiality: Obligations regarding company confidential information and trade secrets
13. Intellectual Property: Ownership and rights over work created during employment
14. Termination: Grounds for termination, notice periods, and procedures
15. Governing Law: Specification of Pakistani law as governing law and jurisdiction
16. Entire Agreement: Standard boilerplate confirming this as the complete agreement between parties
1. Commission Structure: For sales or performance-based roles, detailing commission calculations and payment terms
2. International Travel: For positions requiring international travel, including travel policies and allowances
3. Stock Options: For senior positions or startups offering equity compensation
4. Training Obligations: For roles requiring specific training or certification requirements
5. Garden Leave: For senior positions, provisions for paid leave during notice period
6. Post-Employment Assistance: For senior executives, obligations to assist with transition or litigation after departure
7. Moral Rights: For creative or technical roles involving copyright works
8. Remote Work Provisions: For positions allowing work from home or remote locations
9. Non-Solicitation: Additional restrictions on soliciting employees or customers, often for senior roles
10. Secondment Provisions: For employees who may be seconded to other group companies or clients
1. Schedule 1 - Job Description: Detailed description of the role, responsibilities, and performance expectations
2. Schedule 2 - Compensation Details: Breakdown of salary components, benefits, and any variable pay structures
3. Schedule 3 - Company Policies: List of applicable company policies that form part of the employment terms
4. Schedule 4 - Restricted Business Description: Detailed description of competitor businesses covered by non-compete clause
5. Schedule 5 - Confidential Information: Specific categories of confidential information covered by confidentiality obligations
6. Appendix A - Employee Code of Conduct: Company's code of conduct and ethical guidelines
7. Appendix B - Benefits Summary: Detailed description of all benefits and eligibility criteria
8. Appendix C - IT and Communications Policy: Guidelines for use of company IT resources and communication systems
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