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Non-compete clause

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1 Non-compete clause on Sun Jun 05, 2011 12:21 am

tech624


Arresto Menor
Hi,

I would like to ask some advice regarding my situation.
I was previously working for a IT company as a technical guy, my contract with them has a non-compete clause that says i cannot seek employment with direct competitors in the same line of business.
even if i was aware of that condition, i still applied to one of the company's direct competitor because the compensation from my previous company was not enough to supply the needs (medicines) of my parents and some family needs. i resigned from my previous company and have received clearance from them already. but after 4 months they said they will sue me for transferring to a direct competitor.

what should be my thinking about this?since i am a technical guy, i have no knowledge or connection with regards to their sales except that i know of course the customers of my previous company. my current and previous employers have no same customers and my current employer has no plans of trying to get their customers.

since i am only a technical employee, i believe that i know trade secrets that will affect the business of my previous employer.

thanks in advance for the advice.

God bless!

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2 Re: Non-compete clause on Sun Jun 05, 2011 10:23 am

attyLLL


moderator
does you contract say you should never transfer to a competitor or for just a limited period.

if for a limited period, like 1 year, then it is enforceable.


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3 Re: Non-compete clause on Sun Jun 05, 2011 11:05 am

tech624


Arresto Menor
yes it says that i cannot transfer within two years.
What should i expect from this?this was my first job and i have only been with them for less than a year.

Thanks again.

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4 Re: Non-compete clause on Sun Jun 05, 2011 9:15 pm

attyLLL


moderator
they can sue you for damages, and if they win, they can only execute the award against any properties that are in your name.


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5 Re: Non-compete clause on Mon Jun 06, 2011 2:23 pm

Associate


Arresto Menor
sir pano pag wla siyang kahit anong property?? what if sa parents lng siya nakikitira and wlang kahit anong pwedeng makuha sknia??

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6 Re: Non-compete clause on Mon Jun 06, 2011 3:07 pm

tech624


Arresto Menor
how are those damages computed?
can they force me to resign on my present company?

what can they do if i have no properties in my name?im a fresh grad..

thanks again

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7 Re: Non-compete clause on Mon Jun 06, 2011 7:19 pm

attyLLL


moderator
it may be computed based on the contract.

if there's no property, then wala.


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8 Re: Non-compete clause on Tue Jun 07, 2011 9:39 am

tech624


Arresto Menor
what if there was nothing indicated on the contract on what damages they will compute?

can they force me to resign in my present company?

thanks again,

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9 Re: Non-compete clause on Tue Jun 07, 2011 3:42 pm

tech624


Arresto Menor
additional question, what are the boundaries of the term "Competitor"? does it mean that if my company is an IT company, the clause applies to all IT companies?

thanks.

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10 Re: Non-compete clause on Tue Jun 07, 2011 7:22 pm

attyLLL


moderator
then they will have to prove the extent of their damages.

they can try to sue your company also, but not force your to resign. it depends on what is proven whether it will prosper.

being a competitor is a factual issue. if their products are not related, than I would say that they are not competitors.


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11 Re: Non-compete clause on Tue Jun 07, 2011 10:11 pm

tech624


Arresto Menor
thanks a lot for your advices sir. it really cleared my mind.

last question, if they cannot prove any damages have occurred related with my departure and transfer, what will happen to the case? because as far as i know, i was not an important employee there during my time. and i really could not think of any damages that could have occurred because of this.

thanks and God bless.

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12 Re: Non-compete clause on Wed Jun 08, 2011 11:42 pm

attyLLL


moderator
my guess is that the court may still award nominal damages, a smaller amount.


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13 Re: Non-compete clause on Thu Jun 09, 2011 3:10 pm

tech624


Arresto Menor
hi again.

have you encountered cases similar like mine?
how far do you think this case will prosper? can i argue that they are limiting my right to have a job? technical knowledge about computers can easily be googled if wanted and they have no investments on me.

thanks.

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14 Re: Non-compete clause on Thu Jun 09, 2011 11:59 pm

attyLLL


moderator
read the case at the end of this thread: http://www.pinoylawyer.org/t5650-non-compete-clause


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15 Re: Non-compete clause on Fri Jun 10, 2011 9:40 am

tech624


Arresto Menor
hi sir.
i have already read that article. although its the same case, the employee was a vice president of the company so i understand that it was really unfair to her previous company that she transferred to a competitor.
but me i was only a rank and file staff so that makes it different. the employee in your link knows trade secrets and marketing strategies while i do not know anything but to repair computers.

thanks.

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16 Re: Non-compete clause Today at 4:29 pm

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