Document background
The Non-Compete in Severance Agreement is a critical document used in the Philippines when an employer needs to protect its business interests while providing separation benefits to departing employees. This document is particularly relevant when terminating employment relationships with key personnel who have access to sensitive information, trade secrets, or valuable client relationships. The agreement must carefully balance the employer's need to protect legitimate business interests with the employee's constitutional right to work under Philippine law. It typically includes detailed provisions about severance payments, restricted activities, geographic limitations, and duration of non-compete obligations. The document must comply with Philippine labor laws, particularly regarding reasonableness of restrictions and adequacy of consideration through severance benefits. It's commonly used during voluntary separations, restructuring, or negotiated exits where protecting company interests is paramount.
