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Non-Compete Annex: A Ready Template Certified by a Licensed Saudi Lawyer
- Category
- Employment and HR
- Language
- Arabic + English
- Format
- Editable DOCX
CERTIFICATION RECORD
This template was prepared and reviewed by a licensed Saudi lawyer and is kept current as the Kingdom's regulations change.
Where an Arabic and an English text exist, the Arabic text prevails
An annex that restrains competition after leaving with a defined time, geography, and activity, plus a non-solicitation clause and consideration for the restraint where agreed.
A non-compete is a double-edged clause: written in general words that bar the employee from the whole field forever, it loses its value as an excessive restraint that cannot be defended, and absent altogether it leaves the business exposed to a departing employee who takes its client relationships and its secrets. Sound drafting rests on specificity: a precisely described competing activity, a known geographic scope, and a reasonable duration. Sighaty template E-09 is an annex attached to the employment contract that builds the restraint on those three elements, adds a non-solicitation undertaking, and allows consideration for the restraint to be recorded where the parties agree. The annex is bilingual with the Arabic text prevailing on any difference.
Get the Non-Compete Annex TemplateE-09What this annex is and when you need it
The annex is a standalone document attached to the employment contract and referring to its date, and it governs the stage after the employment relationship ends. Not every employee needs one: it belongs to roles whose holders see the business's secrets or hold a direct relationship with its clients. The narrower and more precisely described the restraint, the closer it is to being accepted and the further it is from looking like a bar on the employee earning a living.
- A sales or business development employee holding a direct relationship with the business's clients.
- An employee with access to trade secrets, working methods, or internal pricing.
- The need to prevent solicitation of clients or colleagues after departure for a defined period.
What the smart-fill asks and what you receive
The smart-fill asks for the employment contract date in both the Hijri and Gregorian calendars, the employer's name, and the employee's name so the annex ties to the contract, then builds the restraint question by question instead of leaving you to draft it yourself.
- What the non-compete protects: the employer's clients, or its trade secrets and confidential information.
- The non-compete duration after leaving, choosing between 12 months and 24 months.
- The geographic scope, a city or a region, and a precise description of the competing activity, both in Arabic and English.
- The non-solicitation period in months, and the consideration for the restraint where agreed, whether a lump sum or a monthly allowance.
Within minutes you receive a formatted bilingual annex, ready to sign and editable before approval, written with clear limits both parties know before signing rather than after departure. That clarity is what turns the restraint from an intimidating phrase into a clause you can rely on.
Why a lawyer-certified template beats a free download
Free templates usually write a single line barring the employee from working for any competitor, with no duration, no place, and no description of the activity, which is the worst thing to write because it gives a false sense of security. The Sighaty template is certified by a licensed Saudi lawyer and requires you to define the scope, the duration, and the activity by name, and it separates non-compete from non-solicitation because they are two different undertakings, and it is updated as the regulations change.
Frequently asked questions
What is the difference between non-compete and non-solicitation?
A non-compete bars carrying on a described competing activity within a defined geography and period, while non-solicitation bars approaching the business's clients or colleagues to draw them away. The template treats them as two separate undertakings and asks for the non-solicitation period in months independently of the non-compete duration.
Must there be financial consideration for the restraint?
It is not required in every case, but consideration makes the restraint more balanced and easier to apply in practice, especially where the duration is long or the restricted activity is broad. The template therefore lets you record consideration for the restraint where agreed, as a single payment or a monthly allowance, or leave it without consideration if the parties agree.
Why does the template ask for a precise description of the competing activity?
Because a general restraint barring work in an entire sector is hard to defend, while one described by a specific activity and a known scope protects the business's real interest without shutting the employee out of work. The template asks for the activity description in Arabic and English so the text matches in both languages.
The content is general guidance, not legal advice; consult a licensed lawyer for your specific case.