Non compete agreement drafting for NZ businesses

The point is usually to protect a legitimate business interest when someone leaves or changes roles. That might include confidential know-how, client relationships, pricing information, supplier contacts or strategic plans. A non compete clause is not just about stopping competition in the abstract. If the wording goes further than the real risk, it may be harder to rely on. A properly prepared agreement helps define what is being protected and how, which is why the relationship and factual context matter as much as the clause label.

Most non compete agreements deal with the restricted activities, the period of restraint, the area covered, and the business interest said to justify the restriction. They may also include non-solicitation wording for clients, staff or suppliers, plus confidentiality obligations and return of business property or information. The exact mix depends on whether the agreement is for an employee, contractor, shareholder or business partner. In many cases, the restraint wording needs to sit consistently with another document such as an employment agreement, contractor agreement or sale document.

The key factors are the person's role, the sensitivity of the information they access, the closeness of their customer relationships and the practical market they operate in. A senior salesperson with direct client control raises different issues from a junior contractor with limited access. The drafting also depends on whether the restraint is standalone or part of a broader commercial arrangement. Because enforceability often turns on reasonableness, the right approach depends on the working arrangement, documents and the factual context rather than a one-size-fits-all form.

Often not. Templates tend to use broad restraint wording without enough connection to the actual business interest being protected.

That can create two problems at once: the clause may be too aggressive to be useful, or too generic to deal with the real risk. For example, a template may ignore whether the person had access to confidential pricing, whether they dealt directly with key customers, or whether a narrower non-solicitation clause would be more appropriate. Tailored drafting lets the agreement reflect the real relationship instead of relying on generic restraint language.

That depends on how quickly the key details are available and whether the agreement needs to fit with other documents already in place. We will usually need to know who the agreement is for, what role they hold, what business interests are being protected and whether there are existing employment, contractor or shareholder documents to align with. Once those points are clear, we can draft the agreement and flag any wording issues that may need a commercial decision from you before the document is settled.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Non Compete Agreement service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

Sprintlaw NZ Limited is a legal consultancy, not a law firm, and is not regulated by the New Zealand Law Society. We don't act in court or tribunal matters, conveyancing (including leases and business sales) or other reserved areas of work. Communications with Sprintlaw are unlikely to be protected by legal professional privilege. We still keep everything confidential under our engagement letter.