Non-Competition after Employment

[Zeke]

Hello everyone,

I was offered a new contract by my employer and they added the following clause to the contract. From what i understand it shows that if i quit or get fired i can not work for any competitor for 12 or 6 or 3 or 1 month (?) Dont understand what will determine the period.

I asked my collegues and i am the only one who has it....I am an analyst for a broker and even the sales people have just 1 month guardian leave...

Any ideas if it is enforceable especially for 12 months?

"You may not - for the duration of the non-compete period manage, be employed by, directly or indirectly assist or be interested in any business in the restricted territory that essentially and materially computer with the activities of the company and/or any related corporation in the restricted territory.
The non-compete period means:
a) a period of 12 months from the date of termination of your employment but if that period causes a restriction in clause above to be held to be legally unenforceable, then:
b) a period of 6 months from the termination eaten, but if that period causes a restriction in clause above to be held to be legally unenforceable, then:
c) a period of 3 months from the termination date, but if that period causes a restriction in clause above to be legally unenforceable, then:
d) a period of 1 month from the termination date"

[Strong Eagle]

They can't legally keep you from taking another job.

[x9200]

Hello everyone,

I was offered a new contract by my employer and they added the following clause to the contract. From what i understand it shows that if i quit or get fired i can not work for any competitor for 12 or 6 or 3 or 1 month (?) Dont understand what will determine the period.

I asked my collegues and i am the only one who has it....I am an analyst for a broker and even the sales people have just 1 month guardian leave...

Any ideas if it is enforceable especially for 12 months?

"You may not - for the duration of the non-compete period manage, be employed by, directly or indirectly assist or be interested in any business in the restricted territory that essentially and materially computer with the activities of the company and/or any related corporation in the restricted territory.
The non-compete period means:
a) a period of 12 months from the date of termination of your employment but if that period causes a restriction in clause above to be held to be legally unenforceable, then:
b) a period of 6 months from the termination eaten, but if that period causes a restriction in clause above to be held to be legally unenforceable, then:
c) a period of 3 months from the termination date, but if that period causes a restriction in clause above to be legally unenforceable, then:
d) a period of 1 month from the termination date"

Almost certainly 12 months is not enforceable. It is either 6 or 3 months (IIRC more likely the later) and is probably to some extent circumstantial. I would suggest to visit a lawyer and pay this $100-300, just to be sure or ask somebody from HR that you think may know and will be honest with you.

[PNGMK]

Singapore courts take a dim view of restriction of trade clauses in contracts. I'd not worry about it. IF you are fired or quit and they harras you for damages have a solicitor write them a letter.

[Zeke]

Hello everyone,

Thank you so much for your replies. I did speak with a lawyer at the end and here is her reply in summary:

- Employer should provide reasonable compensation during the non-compete to the employee something that is missing from the contract!
- Employee must hold a fairly senior position in the company that have significant impact on the operations of the business. I am assuming such as directors(?) Something that I am not
- The Employer should justify in detail how that clause can protect him.

I have replied to HR accordingly and i am waiting to come back to me.

@Strong Eagle
I understand that they can not stop me from taking another job but i am afraid they might be asking me to pay them "damages" etc

@x9200
Do you have any links i can check regarding the duration? 3 months is not too bad but 12 months is a suicide.

@PNGMK
Do you know of any cases that a company actually harassed ex-employees in Singapore?

I would appreciate more comments from people who have experience on this matter.

Thank you!

[Strong Eagle]

Zeke... look at the contract the muppets offered you... if they can't enforce 12 months, they'll try for 6, and if they can't do that, then 3, then 1. They already know they can't do anything.

They can ask you to pay damages and you can tell them to go piss up a rope. You saw what your lawyer said... do you think that the employer would actually file suit for compensation?

They do this to put the fear in you... it's not about quitting and taking another job they are worried about... they put that crap in there so you won't quit in the first place... that you will be too fearful to move on.

[x9200]

Zeke, no links, first hand discussion with a lawyer. The situation was a bit different, my wife quit to open her own company directly competing with her then present employer, and even in this case, it was max 6 months, as advised by the lawyer.

The sh*t that was in her contract was unlimited time prohibition to work with the same clients, and when the lawyer saw this, had to control himself not to laugh.

[PNGMK]

No links; just my own experience and seeing a few others successfully combat this.

[the lynx]

It is a very Singaporean thing, especially among SMEs. And trust me, it is not enforceable legally because 99% of the time such contract has loopholes and/or employers fail to establish how not adhering to this clause affects them negatively and significantly. The employers must also be able to demonstrate that you are undermining the operations of the company by joining a competitor (a footage of you copying customer information etc). MNCs don't even have that clause for junior and mid-level positions!

[PNGMK]

As per Link the lazy ass HRM's just copy each other's boiler plate provisions and never have it properly checked so the whole thing is worth less than the paper it's printed on.