Non-compete clause

Employers here may have a non-compete clause in their employment contract.

This section of the contract serves to restrict the actions of their employees after they resign and join a competitor.

In the past, these restrictive covenants were difficult to enforce.

However, in a high court decision, a trading company was able to prevent a former employee from selling to their overseas customers because of the special circumstances.

This highlights the importance of how non-compete clauses are drafted and being able to show that the ex-employee has breached it.

HR Poll: 

Do you have a non-compete clause in your employment contract?

Yes: 69.57%

No: 21.74%

Sometimes: 6.52%

Not sure: 2.17%

REPLIES & COMMENTS

Important - TL

Could you share where we can read more on this success case - Chua

We are Service Company, we do put this clause for Sales/Business Development and Management level staff - Jenny

1. Prohibited Area 2. Restricted Period (can the duration base on grade/rank?) 3. 'Consideration', i.e. compensation payment (is it mandatory? and ratio 1:1) - Chian Hui

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