Non Competition Agreement Singapore

Posted by Admin on Dec 13, 2020 in Uncategorized |

When developing an employment contract, employers might consider whether they should include a non-compete clause. Finally, it is a good idea to protect the interests of their company by preventing outgoing employees from joining the competition. Second, the agreement should not be broader than is necessary to protect the interests concerned. In determining whether the current clause is not broader, which is reasonably necessary to protect the legitimate interest of the employer, the following factors are important: third, the geographic area covered by the clause should not be broader than the area for which the worker is responsible. [31] For example, a clause is more appropriate when it restricts competition only in countries or cities where the employee has significant customer contact. [32] In general, the clause, if it applies to singapore as a whole, is reasonable, since Singapore is a small country. [33] However, if the worker has only worked in Singapore and the clause prevents him from drawing on his experience in Singapore, the clause may be entirely inappropriate. [34] In this case, a geographical restriction of a particular radius around your business location is considered appropriate. [35] The Singapore court recognizes that the client and commercial ties are considered a legitimate property interest.

However, a non-competition clause to illegally restrict competition is not applicable. Special circumstances arise when the employer provides something additional in exchange for the employee`s acceptance of the non-competition clause. For example, the employer offers a worker compensation for the duration of the competition. Since the worker has been compensated, the court may consider the non-competition clause to be appropriate. Where a non-competition clause applies to all workers, regardless of their type of work, seniority or access to confidential information, the clause may be considered inappropriate. Such a clause would imply the real intention of employers to restrict competition. If you have evidence that your employee violated his non-compete agreement, you can apply to the court for an injunction preventing him from carrying out his new assignment. Alternatively, you can also sue your ex-employee for damages, or threaten to do so, in the hope that they will stop acting. There are two main points that employers should keep in mind when deciding whether the agreement is appropriate for the contracting parties. As a general rule, these legitimate interests are either expressly provided for in the employment contract or deducted by the Court of Justice on the basis of the surrounding circumstances (if they are not established).

The Court will also consider the position and seniority of the worker concerned, which affect the weight of the employer`s interests to be protected. A non-compete clause may be considered unreasonable if it applies to all workers, regardless of their seniority, manner of work or power of access to confidential information. Such a clause indicates the employer`s actual intention to restrict competition. The extent to which you can protect your business interests through confidentiality and non-competition clauses depends on the wording of the clauses, the volume of staff work and the nature of the industry. A confidentiality clause may protect trade secrets and other confidential information that are not part of the employee`s general knowledge.

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