Subcontractor Non Compete Agreement for Singapore

Subcontractor Non Compete Agreement Template for Singapore

A Subcontractor Non-Compete Agreement under Singapore law is a legally binding document that restricts a subcontractor from engaging in competitive activities during and after their engagement. The agreement must comply with Singapore's legal framework, particularly regarding reasonable restrictions in duration, geographic scope, and scope of activities. It includes specific provisions for protecting legitimate business interests while maintaining compliance with competition laws and common law principles on restraint of trade.

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What is a Subcontractor Non Compete Agreement?

The Subcontractor Non-Compete Agreement is essential for businesses in Singapore seeking to protect their intellectual property, trade secrets, and competitive advantage when engaging external contractors. This document becomes particularly crucial when subcontractors gain access to sensitive information or develop close relationships with clients. Under Singapore law, such agreements must demonstrate reasonable restrictions and legitimate business interests to be enforceable. The agreement typically includes specific provisions about restricted activities, geographic limitations, duration, and consequences of breach, while ensuring compliance with Singapore's competition laws and common law principles.

What sections should be included in a Subcontractor Non Compete Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Non-Compete: Detailed description of restricted activities and their limitations

5. Duration: Time period for which restrictions apply

6. Geographic Scope: Territorial limits of the restrictions

7. Consideration: Value exchanged for the non-compete obligations

8. Confidentiality Obligations: Protection of confidential information and trade secrets

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

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

1. Garden Leave: Provisions for paid non-compete period when immediate competition risk is high

2. Non-Solicitation: Restrictions on approaching clients or employees when protecting client relationships is crucial

3. Severability: Provisions for partial enforcement if sections are invalid, particularly important for multi-jurisdictional agreements

What schedules should be included in a Subcontractor Non Compete Agreement?

1. Schedule 1: Restricted Activities: Detailed list of specific activities prohibited under the agreement

2. Schedule 2: Restricted Territory: Detailed description of geographic restrictions with maps if applicable

3. Schedule 3: Restricted Clients: List of specific clients covered by non-solicitation (if applicable)

4. Appendix A: Consideration Details: Breakdown of compensation or benefits provided in exchange for non-compete obligations

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

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use
Industries

Singapore Contract Law: Common law principles governing contract formation, validity, and enforcement in Singapore, including the Contracts (Rights of Third Parties) Act 2001

Employment Act (Chapter 91): While not directly applicable to subcontractors, provides context for distinguishing independent contractor relationships from employment relationships

Competition Act (Chapter 50B): Ensures non-compete provisions do not violate competition laws or create unfair market restrictions

Non-Compete Requirements: Legal requirements for valid non-compete clauses: must protect legitimate business interests, be reasonable in geographic scope, duration, and restricted activities

Restraint of Trade Doctrine: Common law principles requiring non-compete provisions to be reasonable between parties and not against public interest

Personal Data Protection Act 2012: Governs the collection, use, and disclosure of personal data if included in the agreement

Consideration Requirements: Legal requirement that non-compete agreements must be supported by adequate consideration to be enforceable

Enforcement Mechanisms: Specific remedies and enforcement procedures available under Singapore law for breach of non-compete agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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