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Employee Non Compete Agreement Template for Singapore

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Key Requirements PROMPT example:

Employee Non Compete Agreement

"I need an Employee Non Compete Agreement for our Singapore-based senior software developer who has access to our core proprietary technology, restricting them from working with direct competitors within Southeast Asia for 12 months after employment ends in March 2025."

Document background
The Employee Non Compete Agreement is a crucial document in Singapore's business environment, particularly for companies seeking to protect their competitive advantages and confidential information. This agreement becomes relevant when employers need to safeguard their legitimate business interests from former employees who might leverage insider knowledge or relationships to compete directly. Under Singapore law, such agreements must be carefully drafted to ensure enforceability, with reasonable restrictions in terms of duration, geographic scope, and prohibited activities. The agreement typically includes specific provisions about the nature of restricted activities, compensation, and enforcement mechanisms, all while balancing the employer's interests with the employee's right to earn a living.
Suggested Sections

1. Parties: Identification of employer and employee including full legal names, registration numbers and addresses

2. Background: Context of employment relationship and reason for non-compete agreement

3. Definitions: Definitions of key terms including restricted business, territory, period, confidential information

4. Non-Compete Obligations: Core restrictions and their scope, including specific prohibited activities

5. Duration: Time period for which the restrictions will apply post-employment

6. Geographic Scope: Territorial limits of restrictions and specific markets covered

7. Consideration: Details of compensation or benefits provided in exchange for the restrictions

Optional Sections

1. Non-Solicitation: Additional restrictions on approaching customers, employees, or suppliers of the company

2. Confidentiality: Provisions for protecting sensitive information and trade secrets

3. Garden Leave: Terms for paid leave during notice period to protect business interests

4. Severability: Provisions ensuring survival of agreement if certain parts are found invalid

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of restricted geographic areas and markets

2. Schedule 2 - Restricted Business: Detailed description of prohibited business activities and sectors

3. Schedule 3 - Consideration Details: Breakdown of compensation or benefits provided in exchange for restrictions

4. Schedule 4 - Protected Customers: List of key customer relationships subject to non-solicitation provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses

























Industries

Singapore Contract Law: Common law principles of contract formation under Cap. 43, including requirements for consideration and reasonableness in contract terms

Employment Act: Chapter 91 of Singapore laws governing employment relationships and basic terms and conditions of employment

Tripartite Guidelines: Guidelines on Fair Employment Practices that must be considered when drafting employment-related agreements

Competition Act: Chapter 50B of Singapore laws regulating competition and market conduct, relevant for restrictive covenants

Trade Secrets Act: Legislation protecting confidential information and trade secrets, crucial for non-compete provisions

Doctrine of Restraint of Trade: Legal principle requiring non-compete clauses to be reasonable and protect legitimate business interests

Man Financial v Wong Bark Chuan David: 2008 case law establishing principles for enforcement of non-compete clauses in Singapore

Smile Inc Dental Surgeons v Lui Andrew Stewart: 2012 case law providing guidance on reasonable scope and duration of non-compete restrictions

CCL v Byrne Roger Peter: 2013 case law further defining parameters for enforceable non-compete agreements

Personal Data Protection Act: 2012 legislation governing the collection, use, and disclosure of personal data, relevant when handling confidential information in non-compete agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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