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Non-Compete Agreement

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1 Non-Compete Agreement on Thu Jun 27, 2013 10:53 am


Arresto Menor
Hi lawyer:
    I signed the non-compete agreement before I resign. the agreement only stated that I can't join the competitor company from 1 years since date of resign; and If I breach this rules, I need to pay 1 years salary and other benefits to company as liquidated damages.

   First, My questions is, if the company requested me to sign the non-compete agreement, so the company also should to pay me the compensation due to I can's work and can't affordable my living expanse.

   Second, In case, I join the competitors, But I did not sign the any contract with my new company, so My previous company still can sue me? and  How Can I win this case?

Please help!


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2 Re: Non-Compete Agreement on Sun Jun 30, 2013 9:38 am


imo, if the signing was at the point of resignation, then it is void for lack of consideration.

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3 Re: Non-Compete Agreement on Wed Jul 17, 2013 3:38 pm


Arresto Menor
Hi, I'm a doctor by profession and was previously employed in a sister company of an HMO, that solely dealt with claims processing. I worked there as an Asst Manager for 2 years. Prior to start of employment, the HR of the HMO made me sign a non-compete agreement, that stated I can't be employed in a competitor HMO for a period of 1 year from resignation. At that time, I did not pay much attention to the waiver, since I had no thoughts about resigning. However, while staying with the company, I came to realize that I was not happy and that there were many issues that did not make sense to me. First of all, I really was not sure who my employer was - the HMO or the sister company..since they only have one owner, one HR department, but they are registered separately in SEC and file BIR separately. And, in time, it even became more confusing, since they said that the sister company is not really a sister company but some form of sub-contractual.. They gave this latter reason when I went asking why we did not have the same benefits as the HMO, like right to join the Union or have Collective Bargaining Agreement. We also did not have a retirement package and had less medical coverage unlike the ones employed in the HMO.

Anyway, after 2 years, I decided to resign and pursue specialization in a govt hospital. But I was only in training for 5 months, since I could not meet my family's expenses, being also the breadwinner. So, I decided to apply at an HMO. This time, I was sure that it was really the HMO that was hiring me. They made a job offer for Asst Manager for Operations Department. I signed the job offer already, and will begin work in 2 weeks time. While securing my clearance from my previous HMO/sister company employer, I was reminded of my non-compete waiver. Now, I'm confused on what decision to make. I am afraid of the consequences. To add, the non-compete agreement did not state any consequence, i.e. "penalty of P_____..." only that I could not be employed by a competitor HMO for a period of 1 year. Also, they did not provide a copy for me. I am afraid for my profession. Also, I don't want to pass up the good opportunity the new employer is offering me. By the way, before I applied to the competitor HMO, I tried to re-apply to the old employer, but they did not have any opening for me. And, lastly, I have not informed my new employer that I have a non-compete waiver with my previous employer. Should I do so? It might harm my application. Thanks in advance for your advice!

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4 Re: Non-Compete Agreement on Tue Apr 01, 2014 2:50 am


Arresto Menor
Hello Attorney!

I am a Virtual Assistant for 8 months and handled two clients on my ex company. I decided to resigned because I had to pursue my studies. When I resigned, my clients also decided to end their contract with my company too. My client offered me a partime job ( i don't call it a legal employment coz I don't sign anything or there is no contract between the two parties). It's just a matter of giving me some projects to do (like making flyers) and he'll pay for me that.

Ad now my ex company knew about it that I work with some projects of my ex clients and they remind me of my contract that I signed a "non-compete" agreement and I am not allowed to work with the same type of business, etc for 1 year. they are now threatening me that they'll file a case againts me.

My question is, i don't really work even part time with my ex clients coz they just gave me some little projects to do and they'll pay for me that and that ends the transaction. they just decided to do it because we wanted to help me with my allowance in school and I did not sign anything that I work or employed with them.

Can my ex company file against me? and will I be afraid of this case? Please need your advise coz I'm afraid now.

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