Non- Competition Agreement

Hi Everyone,

I just want to clarify whether the "Non-competition Agreement" for each employee is lawful. The company made all the employee sign this agreement wherein it states that an employee must not be employed, engaged, or be related in a business in any manner similar to, or in connections with any of the company's businesses during the term of his employment and two (2) years after the employee's tenure. Violations of the agreement will charged the employee for Php1,000,000 as damages. Is it legal??? Saan na lang magtatrabaho ang empleyado kung yun lang ang kanyang expertise. Maghihintay pa sya ng two (2) years?

Hope you can enlighten us.

lrdusaran wrote:Hi Everyone,

I just want to clarify whether the "Non-competition Agreement" for each employee is lawful. The company made all the employee sign this agreement wherein it states that an employee must not be employed, engaged, or be related in a business in any manner similar to, or in connections with any of the company's businesses during the term of his employment and two (2) years after the employee's tenure. Violations of the agreement will charged the employee for Php1,000,000 as damages. Is it legal??? Saan na lang magtatrabaho ang empleyado kung yun lang ang kanyang expertise. Maghihintay pa sya ng two (2) years?

Hope you can enlighten us.

Generally this is allowed. If you did not like that part of the contract, then you could have declined their offer.

I hope you also understand the side of the employer that if you leave them after you learn of their trade secrets, you can give that to their competitor.

BTW, for what position is this non-compete clause?

Applicable to all...regardless of position...

lrdusaran wrote:Applicable to all...regardless of position...

So far I don't see any reason for it to be unenforceable.