Document background
The Employee Non-Compete Agreement is a crucial document for businesses operating in the Philippines seeking to protect their legitimate business interests, trade secrets, and competitive advantage. This agreement is commonly used when onboarding new employees who will have access to sensitive information, key client relationships, or specialized knowledge. The document must be carefully drafted to comply with Philippine labor laws, which require that such restrictions be reasonable in duration, geographic scope, and nature of prohibited activities. While Philippine courts generally recognize the validity of non-compete agreements, they scrutinize these documents closely to ensure they don't unduly restrict an employee's constitutional right to work. The agreement typically includes specific provisions about restricted activities, consideration provided to the employee, and enforcement mechanisms.
