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Non-Compete Clause

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1 Non-Compete Clause on Fri Nov 09, 2012 12:32 pm


Arresto Menor
Hi, I would like to get your legal advise on the non-compete clause. Here are the facts:

1. I work as a controller of a real estate company.
2. I have the following clause in my employment contract "You shall not perform any service for any person or firm engaged in a business directly or indirectly competing with the local business and/or real estate business of the Company, its subsidiaries or affiliates, and the Group of Companies during the term of this Contract and one (1) year from the effective date of your (i) resignation, (ii) termination from the Company (whether with or without cause)"
3. The company is envolved in real estate.
4. They have subsidiaries and affiliates in almost all the other industries namely (1) Food, (2) Restaurant, (3) Finance, (4) Manufacturing, (5) Medical
5. Another real estate company is offering me something better.
6. The working conditions in my present empolyer is bad. Even without the offer from the other company I was already planning to resign.


a. What are the risk involved if I transfer to the other real estate company?
b. Will the non-compete clause hold water since basically it would say that I cannot find any other job within 1 year here in the philippines since they have affiliates in almost all the industries?
c. What are the possible remedies available on my end?

Thank you

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2 Re: Non-Compete Clause on Fri Nov 09, 2012 8:59 pm


that your employer will file a case for damages and restraining order to enforce the non-compete clause

imo, yes, it is enforceable, but not to its affiliates.

negotiate a clean exit with your company

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