Non Compete Agreement for Singapore

Non Compete Agreement Template for Singapore

A Non-Compete Agreement under Singapore law is a legally binding contract that restricts an employee from competing with their former employer for a specified period within a defined geographic area after their employment ends. Under Singapore jurisdiction, such agreements must be reasonable in scope, duration, and geographic coverage to be enforceable. The agreement must protect legitimate business interests while not unduly restricting the employee's ability to earn a living.

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What is a Non Compete Agreement?

Non-Compete Agreements are essential business protection tools in Singapore's competitive market environment. These agreements are typically implemented when an employee has access to sensitive information, key client relationships, or trade secrets. The document outlines specific restrictions on post-employment activities, including temporal and geographical limitations, and must comply with Singapore's legal framework regarding reasonableness and legitimate business interests. Such agreements are particularly crucial for protecting intellectual property, client relationships, and competitive advantage in high-value industries.

What sections should be included in a Non Compete Agreement?

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, including the employee's former position and access to confidential information

3. Definitions: Key terms used throughout the agreement, including 'Restricted Business', 'Territory', 'Restricted Period'

4. Non-Compete Obligations: Core restrictions including duration, geographic scope, and prohibited activities

5. Duration and Territory: Specific timeframe and geographical boundaries of the restrictions

6. Consideration: The compensation or benefit provided in exchange for the non-compete obligations

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

What sections are optional to include in a Non Compete Agreement?

1. Non-Solicitation Provisions: Additional restrictions on soliciting employees or customers

2. Garden Leave: Provisions for paid leave during notice period

3. Severability: Provisions allowing court modification of unreasonable terms

4. Remedies: Specific remedies for breach including injunctive relief

What schedules should be included in a Non Compete Agreement?

1. Schedule 1 - Restricted Territory: Detailed map or list of geographic areas covered by restrictions

2. Schedule 2 - Restricted Business Activities: Detailed description of prohibited business activities

3. Schedule 3 - Consideration Details: Breakdown of any financial compensation or benefits

4. Appendix A - Confidential Information: List of specific confidential information accessed during employment

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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What is a Non Compete Agreement?

What sections should be included in a Non Compete Agreement?

What sections are optional to include in a Non Compete Agreement?

What schedules should be included in a Non Compete Agreement?

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