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Non-Compete Clause

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51 Re: Non-Compete Clause on Wed Feb 17, 2016 2:20 pm

grapes


Arresto Menor
Hi all. I am working for a company(satellite office from an intl company) in the Philippines as a Junior (insert position here), entry level. recently, i resigned from the company to move to another country. however, they still hired me with an external contract while still waiting for a work visa, as I will be working from home/remotely. in the current and previous contract that I signed, there is this non compete clause that I shall not work to any company engaged in the same business activity or competes with the business of the company I am working for, within a period of 1 year.

moreover, I am currently looking for work here (outside philippines) and one of the companies that was keen to have me was a competitor of "Mother Company".

Having these said, the clause was not limited to a place but the time was there. is this still in effect? how can this be null and void? any help will be appreciated. thank you.

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52 Re: Non-Compete Clause on Wed Feb 17, 2016 6:36 pm

council


Reclusion Perpetua
grapes wrote:Hi all. I am working for a company(satellite office from an intl company) in the Philippines as a Junior (insert position here), entry level. recently, i resigned from the company to move to another country. however, they still hired me with an external contract while still waiting for a work visa, as I will be working from home/remotely. in the current and previous contract that I signed, there is this non compete clause that I shall not work to any company engaged in the same business activity or competes with the business of the company I am working for, within a period of 1 year.

moreover, I am currently looking for work here (outside philippines) and one of the companies that was keen to have me was a competitor of "Mother Company".

Having these said, the clause was not limited to a place but the time was there. is this still in effect? how can this be null and void? any help will be appreciated. thank you.

If there is nothing illegal with the contract and NCC then it is valid anywhere and everywhere unless you are released by your previous employer.

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53 Re: Non-Compete Clause on Thu Feb 18, 2016 3:29 pm

grapes


Arresto Menor
hi again. I read a few explanations on NCC. one of which is:

(a) whether the covenant protects a legitimate business interest of the employer; (b) whether the covenant creates an undue burden on the employee; (c) whether the covenant is injurious to the public welfare; (d) whether the time and territorial limitations contained in the covenant are reasonable; and (e) whether the restraint is reasonable from the standpoint of public policy (Rivera v. Solidbank Corporation [G.R. No. 163269, 19 April 2006]).

can you please confirm if these are necessary for a non compete clause to be enforceable? Also, the non compete clause included in my contract do not contain a territorial/place limitation. will this suffice as a valid argument? thank you.

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54 Re: Non-Compete Clause on Tue Apr 19, 2016 2:10 am

heartofachampion


Arresto Menor
Hi. Is a non compete clause applicable kapag same industry pero sa ibang bansa base yung lilipatang company? Especially pag walang nakalagay na specific jurisdiction doon sa NCC? My NCC is one year after resignation. Thank you

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55 Re: Non-Compete Clause on Thu Apr 21, 2016 1:16 pm

striverine


Arresto Menor
Hi All,

I would like to clarify something with regards to my non compete clause. I recently applied in a company at a different area however it is stated in the non compete clause that I signed that I cannot apply to any "Direct Competitor" of my Company for about a year after my resignation. It was not clearly specified in the clause the stated competitors of the company and where are the areas that i cannot apply. The area of my current company is at Mandaluyong while the company that I applied for is at Pasay. Does the difference in area still cover the clause even if the areas were not actually stated?

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56 Re: Non-Compete Clause on Thu Apr 21, 2016 2:27 pm

council


Reclusion Perpetua
striverine wrote:Hi All,

I would like to clarify something with regards to my non compete clause. I recently applied in a company at a different area however it is stated in the non compete clause that I signed that I cannot apply to any "Direct Competitor" of my Company for about a year after my resignation. It was not clearly specified in the clause the stated competitors of the company and where are the areas that i cannot apply. The area of my current company is at Mandaluyong while the company that I applied for is at Pasay. Does the difference in area still cover the clause even if the areas were not actually stated?

Area is generally not an issue - it's the product or service conflict, especially if the new company does the same thing as the old company.

What did your previous company do?
What does the new company do?

The concern also lies in that any clients of the old company might migrate to the new company because of your transfer.

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57 Re: Non-Compete Clause on Fri Apr 22, 2016 10:56 am

striverine


Arresto Menor
council wrote:
striverine wrote:Hi All,

I would like to clarify something with regards to my non compete clause. I recently applied in a company at a different area however it is stated in the non compete clause that I signed that I cannot apply to any "Direct Competitor" of my Company for about a year after my resignation. It was not clearly specified in the clause the stated competitors of the company and where are the areas that i cannot apply. The area of my current company is at Mandaluyong while the company that I applied for is at Pasay. Does the difference in area still cover the clause even if the areas were not actually stated?

Area is generally not an issue - it's the product or service conflict, especially if the new company does the same thing as the old company.

What did your previous company do?
What does the new company do?

The concern also lies in that any clients of the old company might migrate to the new company because of your transfer.

Basically both companies are almost the same since they are under the hospitality industry. However the difference between the two is that the previous caters to both condominium and hotel guests while the new one solely caters hotel guests. In addtion the location of the two companies are very far from one another so the latter's clients might differ.

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58 Re: Non-Compete Clause Today at 11:57 am

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