Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore. While not directly regulating non-compete clauses, it provides the fundamental framework for employment relationships and must be considered in the context of employment termination.
Common Law Doctrine - Restraint of Trade: Singapore courts follow this doctrine which requires that non-compete clauses must be reasonable in geographic scope, duration, and scope of restricted activities. Key precedents include Tan Kok Yong v Robina Chartered Pte Ltd [2001] and Man Financial v Wong Bark Chuan David [2008].
Competition Act (Chapter 50B): Ensures that any restrictions in the non-compete release do not violate competition laws or create unfair market restrictions. Must be considered when drafting release terms.
Contract Law Requirements: The release must comply with basic principles of Singapore contract law, including the requirement for valid consideration for the release to be legally binding.
Clear Identification Requirement: Legal requirement to clearly identify and reference the original non-compete obligations that are being released.
Explicit Release Language: The release must contain explicit and unambiguous language clearly stating the extent and nature of the release from non-compete obligations.
Effective Date Definition: Legal requirement to clearly specify when the release takes effect and any conditions precedent to effectiveness.
Surviving Obligations: Need to specify any confidentiality or other obligations that survive the release of the non-compete provisions.
