Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore. While it doesn't explicitly address non-compete clauses, it provides the fundamental framework for employment relationships and must be considered in drafting employment-related agreements.
Competition Act (Chapter 50B): Ensures that restrictive covenants are not anti-competitive in nature. Non-compete provisions must be reasonable and protect legitimate business interests without unduly restricting market competition.
Common Law Principles on Restraint of Trade: Singapore courts follow these principles which require non-compete clauses to be reasonable in geographical scope, duration, and scope of restricted activities. Must be necessary to protect legitimate business interests to be enforceable.
Insurance Act (Chapter 142): Specific regulations governing insurance agents including licensing requirements and obligations to insurers. Critical for understanding the regulatory framework within which the non-compete agreement must operate.
MAS Guidelines: Regulatory framework set by the Monetary Authority of Singapore for insurance intermediaries, including compliance requirements that may affect the scope and implementation of non-compete restrictions.
Geographical Restrictions: Legal requirement that any geographical restrictions in the non-compete must be reasonable and specifically defined based on the actual business reach of the insurance agency.
Time Period Limitations: Non-compete duration must be reasonable; Singapore courts typically look favorably upon restrictions lasting 6-12 months, with longer periods requiring strong justification.
Scope of Activities: Restrictions on professional activities must be clearly defined and limited to activities that directly compete with the employer's legitimate business interests.
Consideration Requirements: Legal requirement that adequate consideration must be provided for the non-compete obligations, especially if the agreement is signed after employment has commenced.
