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Non Compete Contract Template for Singapore

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Key Requirements PROMPT example:

Non Compete Contract

"Need a Non Compete Contract for our outgoing CTO who has access to sensitive technical information, to restrict them from working with competitors in Singapore and Malaysia for 12 months after their departure date of March 1, 2025."

Document background
Non Compete Contracts are essential tools for businesses in Singapore to protect their legitimate interests, trade secrets, and competitive advantage. These agreements are particularly relevant when employees or contractors have access to sensitive information or strong client relationships. While Singapore courts will enforce Non Compete Contracts, they must be carefully drafted to ensure reasonable scope, duration, and geographic restrictions. The agreement must balance the employer's need to protect business interests with the employee's right to earn a living, all while complying with Singapore's employment and competition laws.
Suggested Sections

1. Parties: Identification of the contracting parties with full legal names and addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Restrictions: Detailed description of prohibited activities and competition restrictions

5. Duration: Time period for which restrictions apply

6. Geographic Scope: Physical/territorial limitations of the restrictions

7. Consideration: What the restricted party receives in exchange for the restrictions

8. Confidentiality Obligations: Protection of confidential information

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

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period - typically used in employment-related non-compete agreements

2. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers - used when protection of business relationships is crucial

3. Severability: Provisions for partial enforcement if some terms are found invalid - recommended when agreement contains multiple restrictions

4. Remedies: Specific remedies for breach including injunctive relief - used when specific enforcement mechanisms are desired

Suggested Schedules

1. Schedule of Restricted Activities: Detailed list of specific activities prohibited under the agreement

2. Schedule of Restricted Territories: Detailed list of geographic areas where restrictions apply

3. Schedule of Competitors: List of specific competitors or competing businesses that are explicitly covered by the restrictions

4. Schedule of Consideration: Details of compensation or benefits provided in exchange for restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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 governing contract formation, validity, and enforceability in Singapore

Employment Act (Chapter 91): Primary legislation governing employment relationships and workplace rights in Singapore

Competition Act (Chapter 50B): Legislation governing fair competition and business practices in Singapore

Reasonableness Test: Legal principle requiring restrictions to be reasonable in geographic scope, duration, and scope of prohibited activities

Doctrine of Restraint of Trade: Legal principle that non-compete clauses must be justified, not overly restrictive, and serve legitimate business interests

Enforceability Requirements: Legal requirements including clear terms, adequate consideration, compliance with public policy, and proportionality

Singapore Courts' Approach: Conservative approach to enforcing non-compete clauses, with scrutiny of reasonableness and power to modify overly broad restrictions

Employment Context Considerations: Specific considerations for different types of workers (employees vs. contractors) and seniority levels, balancing business protection with right to earn living

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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