Non-compete clauses may be unenforceable, but there is symbolic deterrence in some cases

SINGAPORE – After graduating from a private university in 2018, Mr Zong Xian took on his first job as a manager in a tuition centre, managing finance and human resource functions.

Said Mr Ding, a partner at Simmons & Simmons: ”The common denominator in almost all of those examples is the unique and central position the employee plays in the business. The duration, geographical area and scope of a non-compete clause should also be limited, taking into account the facts of each case, NTUC added.

Mr Ding said that it is “unfortunately fairly widespread” for employers to include a non-compete clause just to dissuade employees from joining a competitor, even though they might not be able to show a legitimate interest to protect, and their interest is already sufficiently protected by other contractual terms.

“When engaged by the Ministry of Manpower and Tafep, employers have generally been cooperative in removing or not enforcing unreasonable non-compete clauses,” said the labour movement. Typically, clauses last for six months to a year, and even longer in rare instances, said Mr Paul Ng, chief executive of recruitment firm TG Group.

This limits unfair practices within the industry and ensures a stable workforce that minimises disruptions to students, EtonHouse said.Meanwhile, childcare provider Babilou has taken another approach.

Source: Healthcare Press (healthcarepress.net)

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