Non Competition Agreement Singapore

There are two main points that employers should keep in mind when deciding whether the agreement is appropriate for the contracting parties. Employers are increasingly inserting non-competition and non-invitation clauses (usually referred to as ”restrictive agreements” or ”restrictions on trade clauses”) into employment and/or termination contracts in order to continue to exercise control over a worker`s actions or obligations after the termination of their employment relationship, to protect themselves from unfair competition and to maintain stable staff. Where such restrictive agreements should only be put in place after or after the termination of a worker`s employment, it should be noted that the worker is not required to accept these obligations of competition, non-invitation and/or confidentiality. If it does, it is likely that, at the end of negotiations, an amount of payment, beyond what it has other contractual rights, will be paid at an amount that will compensate it for the resulting inconveniences. 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. Third, the geographic area covered by the clause should not go beyond the worker`s sphere of responsibility. [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] 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. 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. A non-compete clause can only protect you from competition if the clause provides adequate protection for your business interests. If you hire staff, it is important to develop these clauses carefully and adapt them to the specific information and interests you want to protect. But the law recognizes that people must be able to work after an employer leaves. Confidentiality and non-competition prohibitions therefore do not protect you from competition from ex-employees. It is important to know what information is protected by your confidentiality clause and what your rights are under your non-compete clause. In some cases, special circumstances arise when the employer offers the worker something more for the adoption of the non-compete clause.