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Non-Compete Clause in Employment Contract

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1 Non-Compete Clause in Employment Contract on Tue Jul 01, 2014 1:41 pm

earthling


Arresto Menor
My current employment contract has a non compete clause that restricts me from working with competitors in the same industry within a duration of two years from the time I am no longer connected with the company. I have been working for this company and have been in the same industry for the past 8 years. Somehow I feel its not fair that I have dedicated my the past 8 years of my life and gained much expertise only to loose it and not be able to use it because of the 2 year duration of the non compete clause.

I am also covered by a confidentiality agreement which I truly understand so my current company can protect its advantage but I believe that the non-compete clause is very counter productive regardless of the industry we are in. Please confirm if my assumption on its legality is correct. I heard its clearly illegal in other countries but I'm not sure if its the same case for the Philippines. Thank you very much.

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2 Re: Non-Compete Clause in Employment Contract on Tue Jul 01, 2014 1:47 pm

earthling


Arresto Menor
Saw another topic about this but I'm not sure if the context is the same and there is no concrete answer yet on that post. I'm only questioning its legality here in the Philippines. Hope someone can help shed light on the matter. Thank you.

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3 Re: Non-Compete Clause in Employment Contract on Tue Jul 01, 2014 2:10 pm

council


Reclusion Perpetua
There are legal grounds for the enforcement of a non-compete clause.

Paraphrasing from jurisprudence ....

Not being contrary to public policy, the non-involvement (or non-compete) clause, which petitioner and respondent freely agreed upon, has the force of law between them, and thus, should be complied with in good faith.

There may be reasons that such non-compete clause may be unenforceable, but you may have to work it out in court.

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