Party 1 Full name of the establishment: Commercial registration number: Tax ID number: Address of the head office: Name of the signing legal representative: Title of the representative (Manager/Authorized Signatory): Phone: Email: | Party 2 full name (four-part): national ID: nationality: address: phone: email: |
This contract is concluded between the two parties whose complete data are outlined in the attached contracting form, referred to herein as “the First Party” and “the Second Party”, collectively referred to as “the Two Parties”. In accordance with the provisions of the Egyptian Civil Code No. 131 of 1948, the Egyptian Labor Law No. 14 of 2025 and its executive regulations, the Personal Data Protection Law No. 151 of 2020, the Intellectual Property Rights Protection Law No. 82 of 2002, the Anti-Cyber Crimes Law No. 175 of 2018, and the applicable laws and regulations in the Arab Republic of Egypt, this agreement aims to protect the legitimate business interests of the employer by prohibiting the employee from engaging in any competing activity against the employer during the term of employment and after its termination, in order to maintain trade secrets, confidential information, relationships with customers and suppliers, technical expertise, and the competitive advantage gained by the employer, while considering the balance between the employer's right to protect its interests and the employee's right to practice their profession, within a framework of transparency and adherence to the provisions of the Egyptian Civil Code that permit agreements on non-compete according to the specific conditions and regulations laid down (Article 71 of Labor Law No. 14 of 2025), given that the non-compete clause must be specific in terms of time, place, and type of activity, and must not exceed the legally permissible duration. The two parties have agreed on the following:
Article (1) Definitions of the Agreement
1- The following words and phrases - wherever mentioned in this Agreement - shall have the meanings specified next to each of them, unless the context requires a different meaning:
2- Agreement: refers to this employee non-compete agreement in its entirety, including its clauses and attachments, and its introduction forms an integral part thereof.
3- Employer: the First Party in this Agreement, being the natural or legal person that employs the employee, engaging in a business or professional activity that it seeks to protect from unfair competition.
4- Employee: the Second Party in this Agreement, being the natural person who works for the employer, having access to trade secrets, confidential information, customer relationships, technical expertise, and the competitive advantage of the employer.
5- Employer's Activity: the commercial, professional, industrial, or service activity carried out by the employer, as specified in Annex (1) of this Agreement, which is conducted within the defined geographical scope.
6- Competing Activity: any business, professional, industrial, or service activity that is similar or identical to the employer's activity, or competes with it directly or indirectly, including working for any competitor, establishing a competing entity, or serving as an employee, consultant, contractor, agent, or partner for any competitor.
7- Geographical Scope: the geographical area within which the employer conducts its activity, which is subject to the obligations of non-competition, and specified in Annex (1) of this Agreement.
8- Non-Competition Period: the time period during which the employee is obligated not to compete after the termination of the employment relationship, as specified in Article (4) of this Agreement.
9- Compensation for Non-Competition: the financial amount that the employer is obliged to pay to the employee in return for their commitment to non-competition following the termination of the employment relationship, as specified in Article (5) of this Agreement.
10- Breach: any act or omission by the employee that results in a violation of their obligations under this Agreement, including working for a competitor, establishing a competing entity, or providing competing services.
11- Related Parties: include subsidiaries, parent companies, sister companies, as well as directors, employees, contractors, consultants, agents, and representatives of the employer.
Article (2) Scope of the Non-Competition Obligation
1- First: Scope of the Protected Activity:
2- The employee is obliged, during the validity period of this Agreement and after its termination, not to engage in any competing activity against the employer's activity, within the defined geographical scope, and for the duration specified in this Agreement.
3- The protected activity includes all the following activities conducted by the employer:
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7- The scope of the protected activity is detailed in Annex (1) of this Agreement.
8- Second: Geographical Scope:
9- The obligation of non-competition applies in the following geographical area, where the employer actually engages in its activities:
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11- The geographical scope must not exceed the areas where the employer actually conducts its activities, or where it has reasonable plans for expansion.
12- Third: Duration of Non-Competition:
13- During the Employment Period: the employee's obligation of non-competition is in effect for the entire duration of the employment relationship with the employer, and the employee may not engage in any competing activity during the employment period in any form.
14- After the Termination of the Employment Relationship: the employee obligates themselves not to compete for a period of months from the date of termination of the employment relationship, provided that this period does not exceed the maximum legally permissible duration.