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Non Compete Agreement After Termination Template for Singapore

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Key Requirements PROMPT example:

Non Compete Agreement After Termination

"I need a Non Compete Agreement After Termination for a senior software engineer who has extensive knowledge of our proprietary technology and will be leaving the company on March 1, 2025; we want to restrict them from working with direct competitors in Singapore and Malaysia for 12 months."

Document background
The Non-Compete Agreement After Termination is essential for protecting an organization's legitimate business interests when employees depart. This document is particularly relevant in Singapore's competitive business environment, where protection of trade secrets, customer relationships, and proprietary information is crucial. The agreement specifies restrictions on post-employment activities, including competition limitations, geographical bouNDAries, and time periods. It must comply with Singapore's legal requirements regarding reasonableness and legitimate business interests, and typically includes consideration for the restrictions imposed.
Suggested Sections

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

2. Background: Context of the agreement, including reference to employment relationship and termination

3. Definitions: Key terms used in the agreement including 'Restricted Business', 'Territory', 'Confidential Information'

4. Non-Compete Obligations: Core restrictions including scope of prohibited activities, geographical limitations, and duration

5. Duration: Specific time period for which restrictions apply post-termination

6. Consideration: Details of compensation provided in exchange for non-compete obligations

7. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Non-Solicitation of Customers: Additional restrictions on approaching former customers - use when employee had significant customer contact

2. Non-Solicitation of Employees: Restrictions on hiring former colleagues - use when employee had management role or influence over other employees

3. Garden Leave: Provisions for paid leave during notice period - use for senior executives or when immediate competition risk exists

4. Severability: Clause allowing rest of agreement to stand if parts are found unenforceable - recommended for all but especially important for complex restrictions

Suggested Schedules

1. Schedule 1: Restricted Territory: Detailed list or map of geographical areas covered by restrictions

2. Schedule 2: Restricted Businesses: Detailed description of competitor businesses or prohibited activities

3. Schedule 3: Consideration Details: Breakdown of any payments or benefits provided as consideration

4. Appendix A: Acknowledgment Form: Form for employee to acknowledge understanding and acceptance of restrictions

Authors

Alex Denne

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

Relevant legal definitions






















Clauses

























Industries

Common Law Principles: Fundamental legal principles including doctrine of restraint of trade, reasonableness test, and protection of legitimate business interests that form the basis of non-compete agreements in Singapore

Singapore Contract Act (Cap. 53): Basic statutory framework governing contract formation and enforcement, including requirements for offer, acceptance, consideration, and intention to create legal relations

Employment Act (Cap. 91): Primary legislation governing employment relationships in Singapore, providing the broader context within which non-compete agreements operate

Key Legal Precedent - Man Financial: Man Financial v Wong Bark Chuan David [2008] 1 SLR(R) 663 - Important case law establishing principles for enforcement of restrictive covenants in Singapore

Key Legal Precedent - Clearlab: Clearlab SG Pte Ltd v Ting Chong Chai [2015] 1 SLR 163 - Significant case law providing guidance on reasonable scope and enforcement of non-compete clauses

Enforceability Requirements: Specific elements required for enforcement: reasonable duration, geographical scope, scope of restricted activities, protection of legitimate business interests, and adequate consideration

Constitutional Considerations: Article 14 of Singapore Constitution regarding right to freedom of movement, which must be considered when restricting employment opportunities

Competition Act (Cap. 50B): Legislation governing competition law in Singapore, ensuring non-compete restrictions don't violate anti-competition regulations

Reasonableness Principle: Legal requirement that restrictions must not be wider than necessary and must be reasonable in protecting legitimate business interests rather than purely preventing competition

Consideration Requirement: Legal requirement that adequate consideration must be provided to the employee in exchange for accepting the non-compete restrictions

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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