HR Community Message
HRSINGAPORE
Non-Compete Clause in Employment Contract - Update 1

QUESTION 

Hello HR Friends,

I would like to know if anyone of your company put a clause in the employment agreement regarding the prohibition of working in other company with the same business within a certain time after the employee leave the company?

Sita

 

REPLY 1

Our company used to do it but we removed the clause from our employment contract a few years ago, as the clause is not enforceable if it limits the employability of the employee. 

Ivy

 

REPLY 2

I do have this clause in my employment contract. Confidentiality clause endures even after employment, and non-compete clause for 1 year. 

Elinda .

 

REPLY 3

Yes we do put such a clause in the employment contract.

Cecilia

 

REPLY 4

We did and I do know many companies include such clause in their employment contract. However, I also read that legally, employer would not win if they go to court with an employee who joins the competitor. There was a Singapore court case documented somewhere and the court deemed that unless the employer could continue paying the ex-employee salary or agree on a certain package, they have no right to decide whether he joins a competitor or not.

Anon 

 

REPLY 5

Our staff signed on the Agreement on Covenants Against Competition.

The period is (1) Year from date of employment termination. They are not
allowed to directly or indirectly within S'pore employed by other business, enterprise or venture that is same as, similar to or in competition with the business of the Company etc.

Christina

 

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HRSINGAPORE PTE LTD | www.hrsingapore.org | query@hrsingapore.org | Tel: 6337-8016 or 6338-5816 | 89 Short Street #04-16 | Singapore 188216 | Co Reg. 200409860M