Legal question: anti competition clause

[Little_prince]

hi guys.

 

asking a question on behalf of a good friend of mind.

 

background.

- Sales manager in a coy dealing with IT products

- Company late with salary on several occasions in the last yr.

- was offered a role with a competitor with 30% up.

- current contract clause restrict employment with all direct and indirect competitors for 1 year.

 

Question

1. Is restraint of trade enforceable in singapore? MOM website very ambiguous.

2. Is late payment of salary/CPF considered a breach of contract? hence making the contract null and void?

 

thanks in advance

[Wt_know]

this has been debated for many times

all company HR will put in the clause that cannot join competitor

and all HR personel know this clause most likely cannot be enforced and can be challenged anytime

besides we are not talking about bringing trade secret from current to new company

 

if you are in the C-group with golden handshake then that's a different story la with ironclad agreement signed

 

Is restraint of trade enforceable in singapore? MOM website very ambiguous.

Edited June 23, 2014 by Wt_know

[Mustank]

South Korea joining North Korea?

[Jman888]

The old company already got problem paying salary liao where got money to sue him, also not sure can win or not.

[Porker]

Just get your friend to set up a sole proprietorship or company and be a "sales vendor" for the employer if really scared. Technically he is not employed by the competitor as he is running his own business.

[Sp4wn]

this case came to mind, but not sure if 100% relevant. found you the case summary instead of the entire case:

 

http://www.singaporelawwatch.sg/slw/attachments/41399/1405-01%20Employment.pdf

[Soya]

The old company already got problem paying salary liao where got money to sue him, also not sure can win or not.

 

....true oso hor.

[Wt_know]

like that starbuck staff cannot join coffee bean ... can only go sell bubble tea ... then bubble tea may also deem competitor

so have to go sell chicken rice liao ... but the person skill is good in making coffee go sell chicken rice?

Edited June 23, 2014 by Wt_know

[Jman888]

then starbuck staff cannot join coffee bean ... can only go sell bubble tea ... then bubble tea may also deem competitor

so have to go sell chicken rice liao ... but the person skill is good in making coffee go sell chicken rice?

 

 

 

but in sales in a different scenario, a bit sensitive if especially for certain trade and whether this person has access to sensitive information which a barista in starbucks dun have lah.

[Kar_lover]

hi guys.

 

asking a question on behalf of a good friend of mind.

 

background.

- Sales manager in a coy dealing with IT products

- Company late with salary on several occasions in the last yr.

- was offered a role with a competitor with 30% up.

- current contract clause restrict employment with all direct and indirect competitors for 1 year.

 

Question

1. Is restraint of trade enforceable in singapore? MOM website very ambiguous.

2. Is late payment of salary/CPF considered a breach of contract? hence making the contract null and void?

 

thanks in advance

 

Don't think enforceable and also no company that I know of ever tried. I was from Telco last time. Many of my staff also from red jump to green then jump to orange then jump back to red again....like playing hopscotch...

[Ktglfc]

Just join lah.

Money to bring to dining table more important than anything else.

[Wt_know]

1. is it necessary ... like i said got access to trade secret (ie: technology or secret formula) or fighting with competitor in open bidding project?

2. public interest ... like south join north? lol

Edited June 23, 2014 by Wt_know

[Little_prince]

like that starbuck staff cannot join coffee bean ... can only go sell bubble tea ... then bubble tea may also deem competitor

so have to go sell chicken rice liao ... but the person skill is good in making coffee go sell chicken rice?

 

yeah. hence the name. restraint of trade.

 

from my understanding, typically v hard to enforce. just want to confirm with any bros here with law knowledge thats' all.

[Myxilplix]

Can lor, make the present employer pay his gardening leave salary for 1 year.

[Little_prince]

Just get your friend to set up a sole proprietorship or company and be a "sales vendor" for the employer if really scared. Technically he is not employed by the competitor as he is running his own business.

hmm. lol. sounds complicated.

 

i'll ask her to consider it.

 

tks bro

this case came to mind, but not sure if 100% relevant. found you the case summary instead of the entire case:

 

http://www.singaporelawwatch.sg/slw/attachments/41399/1405-01%20Employment.pdf

tks. i saw that already before posting.

 

got another one is a dentist one too. lol

[Porker]

hmm. lol. sounds complicated.

 

i'll ask her to consider it.

 

tks bro

 

Not complicated lah. Objective - self employed but has a contract with hiring company to sell their products lor.

 

Contract value = salary plus bonus but can be restructured in a creative manner which is above board. Muayhahaha

[Watwheels]

Is the contract signed in front of a lawyer or a witness? LoL...

 

Or did the company list down the companies that is branded as competitor for your reference?

 

If not, your friend can just ignore it. The company cannot dictate who or where ppl should work for.

 

The thing is there's no law to govern such practice.

Edited June 23, 2014 by Watwheels

[Little_prince]

1. is it necessary ... like i said got access to trade secret?

2. public interest ... like south join north? lol

 

just wondering if sales job more sensitive?