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non-compete agreement

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1 non-compete agreement on Fri Feb 01, 2013 2:42 pm


Arresto Menor
I resigned from work. My contract of specific undertaking with them contains a part that prohibits employment with other enterprise whose business are similar to my previous employer's within a specific period of time, from the date of separation.

Is this enforceable, considering the following facts?

1. Reason of resignation are consistent payroll issues. In EVERY pay period, there were descrepancies. Mostly were unapproved overtimes, duly filed, but are selectively approved and there were shift changes, that since disapproved or approval "withheld", resulted to "undertime" or "tardiness". There even was an official travel that although "approved", later appeared as whole day absence. Plus other similar incidents until my last day with them.

2. Held low-level management position but stayed with the company for a total of 2 months only.

3. In the same contract, the part discussed in the first paragraph is immediately followed by "In any case, however, you hereby bind yourself to keep in utmost secrecy...", directly quoted as stated. Does the statement "In any case" not imply, "In any case [you are employed by a competitor,]" hence employment itself is not prohibited?

4. The contract further specified amounts for liquidated damages, actual damages and even attorney's fees, should the non-comete clause be violated. I've read in another forum that "the burden of proof is on the former employer to demonstrate that the terminated employee has taken any direct action that has resulted in a loss of profit or credibility to the company". So how is it possible for them to specify in the contract already, figures for penalties without assessment of the extent of "damage" yet?

For comments please

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2 Re: non-compete agreement on Wed Feb 06, 2013 2:14 pm


rarely have company tried to judically enforce a non-compete clause, but if they do, there is basis for it to be upheld.

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3 Re: non-compete agreement on Thu Feb 07, 2013 7:15 pm


Arresto Menor
Thank you attyLLL. Suppose however it is enforced, would factors (1) and (3) work to my favor?

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