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I want to apply to company that offers same software and services

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Arresto Menor
Hi Everyone,

I just need an advice regarding this. I want to apply to a new IT company that offers same software and IT services. I'm still employed on my first employer since I graduated 2009. But as I understand the Employment Agreement, it says that I'm not allowed to apply to another IT company that offers same software and IT services (Business Intelligence Consultancy to be specific). It says I have to wait for two years before I apply to such company. Does this agreement violate any labor code or a Philippine law? Is there a way I can apply to that new IT company?

Here are excerpts from the agreement.

EMPLOYEE agrees not to accept any employment from (a) any of the existing as well as future clients of the EMPLOYER, (b) competitors offering similar products/services as EMPLOYER, within two (2) years from the termination of this Employment Agreement without the prior written consent of the EMPLOYER. Should EMPLOYEE violate this provision, EMPLOYEE shall be liable to the EMPLOYER the amount equivalent to the total compensation that the EMPLOYEE would receive from such client/employer during the first year of employment as liquidated damages. This is without prejudice to other damages EMPLOYER may hold EMPLOYEE liable for violation of other provisions of this Employment Agreement.

For the purpose of valuation of the first year employment fees referred above, the salary/remuneration basis of the hired employee of EMPLOYER means the employee’s base salary and other benefits or allowances which represents remuneration in other forms which include but not limited to superannuation, motor vehicles or allowances, commissions, health benefits and housing, communication allowances, travel allowances, 13th/15th month and other bonuses and all other monies or benefits provided to the EMPLOYER employee by hiring party. For the purpose of calculating the candidate’s benefits, the use or provision of a motor vehicle to the candidate shall be valued at a minimum of P700,000.00 as part of the first year’s remuneration package of the employee.

Please advise. I really am thankful.

Very Happy

Last edited by bunchukokoy on Tue Oct 16, 2012 1:11 pm; edited 1 time in total (Reason for editing : Wording error (except - excerpt))

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Reclusion Perpetua
that's why you should think twice before signing any employment agreement..

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Arresto Menor

Yes I know, I'm already there. I'm just asking if there other ways.

Thanks. Very Happy

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