Non disclosure and non competent agreement

Good day po atty,
I signed this agreement as part of contact bago ka mag-start Ng work. It says-Employee agrees that,during the term of his employment contract & for 1year after the termination thereof,he shall not, directly or indirectly, engage in the business of the employer,nor engage in any other employment, activity or business w/c would compete or conflict with the business of the employer. (Employment contract,clause #12) within the Philippines. If I violated daw PO I'll pay Php150k. Legal po ba ito? Kasi po galing PO ako SA isang kumpanya at 4yrs po ako dun bago ako lumipat SA bagong company, Yung old company ko po ay related SA mortgage home loan, yun bago ko pong company ay mortgage home loan din po,pero ako po ay napunta SA online personal loan malayong malayo po SA mortgage loan.. tanong ko, Kung gusto ko po ba bumalik SA mortgage home loan, legal po ba na kasuhan nila ako, Hindi ko Naman PO na-acquire Yung knowledge Ng mortgage home loan SA kanila kundi SA dati Kong kumpanya... Sabi po Kasi SA agreement - Employee agrees that he/she will not engage in the business of the former executives of the company or any mortgage manager or any finance company within the Philippines during the term of his employment contract and for 1 year after the termination thereof​...... Tinatanggalan nila ako Ng karapatan mag-apply SA iba, sayang po Yung knowledge ko SA field na ito at experience... Tama po ba ito? Ano po pwedeng gawin para mawalang bisa ito? Balak ko po Kasi magresign at lumipat Ng kumpanya, if possible, SA mortgage home loan po ulet... Thanks po..

yes legal yan. para mawalan ng bisa yan kelangan pumayag ang companya na ipawalang bisa yan.

Salamat po at good morning.. Pano po Ang gagawin ko Kung kausapin ko sila at Hindi pumayag, lalapit po ba ako SA lawyer o SA dole? Or Kung ipalagay ko po specifically sa coe na personal loan processing officer, pwede na PO ako mag apply as mortgage loan processor? Pwede po b maipanalo Yung agreement? Salamat po

wala kang magagawa kungdi mag antay ng 1 year kung hindi pumayag si company. tulad ng sabi ni lukekyle, legal to at walang nilabag ang kumpanya sa paglalagay nito sa kontrata nila. since pumirma ka, ibig sabihin lang nun pumayag ka sa terms nila.

hindi po ang kumpanya ang nagtanggal ng karapatan sayo magapply sa same field, ikaw po since pumirma ka ng contract na may ganyan clause.

Salamat po Ng Maramisa tulong po ninyo...

Kung sa ibang province ka lilipat, pwede ka nang magtrabaho on the same field. May limit yung valid jurisdiction ng isang non-competition clause, invalid yan kapag buong Pilipinas ang nakasaad sa contract mo. The courts have held its validity if it is within the bounds of a City or Municipality, ang di lang talaga pwede kapag all-encompassing yung range ng non-competition clause.

Check out your contract and update us regarding this matter. Tama naman yung sinabi ng mga iba, generally valid yan kapag pumirma ka and nag-agree. Di yan valid kapag masyadong matagal at malawak yung jurisdiction ng said clause. Usually 2-3 years din yan valid.

If you have time, you should visit the nearest Regional DOLE office and have your contract evaluated by a DOLE officer with legal knowledge of our labor laws.

Salamat po at malaking tulong po ito.

Hi can a non-compete clause actually restricts you from applying directly to your previous employers clients?

StephCurry wrote:Hi can a non-compete clause actually restricts you from applying directly to your previous employers clients?

If it is the same field and it is near the proximity of your previous workplace (same city/province), then I'd say such clause bars you for working with them.

If the work is entirely different from your previous employment, then such clause should not be an issue.

thepoetsedge wrote:Kung sa ibang province ka lilipat, pwede ka nang magtrabaho on the same field. May limit yung valid jurisdiction ng isang non-competition clause, invalid yan kapag buong Pilipinas ang nakasaad sa contract mo. The courts have held its validity if it is within the bounds of a City or Municipality, ang di lang talaga pwede kapag all-encompassing yung range ng non-competition clause.

Check out your contract and update us regarding this matter. Tama naman yung sinabi ng mga iba, generally valid yan kapag pumirma ka and nag-agree. Di yan valid kapag masyadong matagal at malawak yung jurisdiction ng said clause. Usually 2-3 years din yan valid.

If you have time, you should visit the nearest Regional DOLE office and have your contract evaluated by a DOLE officer with legal knowledge of our labor laws.

Thank you for the comment sir thepoetsedge, meron pa po bang validity ang non-completion clause if the nature of the business is outside here on the Philippines and I mean the clients are mostly Europeans.

First, let us check the provision of the employment contract and the coverage of the non-competition clause to see if there is any flaw in the clause itself. If you can provide a copy of the non-competition clause statement, that would be most helpful.

Offhand, I'd say if the employment contract with the non-competition clause is executed in Europe, then it should have no coverage here in the Philippines.

But if the contract was executed here in the Philippines, that is another story.

Good evening po. Addition po, currently po working ako as personal loan processor, pero balak ko po mag apply SA ibang company na katulad Ng company ko ngayon pero as mortgage loan processor.... malayo po Ang scope Ng nature Ng work na ito sa isa't isa... Eto po nakasaad po sa contract ko - "Employee agrees that, during the term of his employment contract and for one year after the termination thereof, he shall not, directly or indirectly, engage in the business which would compete or conflict with the business of the employer, within the Philippines."... Thanks po ulet...

Actually, yung mga confidentiality and non-compete agreements na yan, normal lang sa mga kompany ang magpapirma nyan sa mga empleyadong hina-hire nila. Try mo to basahin, baka lang makatulong. https://www.alburovillanueva.com/must-employment-contracts-hiring-process