Standard Non Compete Agreement Template for Singapore

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Key Requirements PROMPT example:

Standard Non Compete Agreement

"I need a Standard Non Compete Agreement for a senior software engineer leaving our Singapore-based fintech company on March 1, 2025, with restrictions covering Southeast Asia for 12 months and specific provisions about not working on blockchain technology."

Document background
The Standard Non-Compete Agreement is essential for businesses in Singapore seeking to protect their legitimate interests, including trade secrets, customer relationships, and confidential information. This document establishes post-employment restrictions that must meet Singapore's legal requirements for reasonableness and legitimate business protection. It typically includes specific terms about duration, geographical scope, and prohibited activities, while ensuring compliance with Singapore employment law and competition regulations. The agreement is particularly relevant for employees with access to sensitive information or significant customer relationships.
Suggested Sections

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the agreement and employment relationship

3. Definitions: Key terms used throughout the agreement including 'Confidential Information', 'Restricted Business', 'Territory'

4. Restrictive Covenants: Core non-compete obligations including duration, geographical scope, and prohibited activities

5. Duration: Time period for which restrictions apply

6. Consideration: Benefits provided in exchange for non-compete obligations

7. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Garden Leave: Terms for paid leave during notice period - recommended for senior executives or when immediate competition risk is high

2. Non-Solicitation: Restrictions on approaching customers or employees - recommended when customer/employee relationships are crucial

3. Severability: Provisions for partial enforcement if parts are found invalid - recommended when agreement covers multiple jurisdictions or complex restrictions

Suggested Schedules

1. Restricted Territory: Detailed list of geographical areas covered by restrictions

2. Restricted Business: Detailed description of prohibited business activities

3. Consideration Details: Breakdown of compensation or benefits provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Singapore Contract Law: Common law principles of contract formation and Singapore Contract Law (Cap. 43), including requirements for valid consideration

Employment Act: Singapore Employment Act (Cap. 91) governing employment relationships and workplace rights

Competition Act: Singapore Competition Act (Cap. 50B) and Guidelines from Competition and Consumer Commission of Singapore (CCCS)

Tan Kok Yong Case: Key precedent case: Tan Kok Yong v Robina Franchise (Asia) Pte Ltd [2008] regarding non-compete provisions

Man Financial Case: Landmark case: Man Financial v Wong Bark Chuan David [2008] on enforceability of restrictive covenants

Stratech Systems Case: Important precedent: Stratech Systems Ltd v Nyam Chiu Shin [2005] on reasonable restrictions

Reasonableness Test: Legal requirement for reasonable duration, geographical scope, and scope of prohibited activities in non-compete agreements

Legitimate Business Interests: Requirement that non-compete provisions must protect genuine proprietary interests and not merely prevent competition

Enforceability Requirements: Conditions for enforcement including public interest consideration, necessary scope, and adequate consideration

Garden Leave Provisions: Considerations for garden leave periods and their interaction with non-compete clauses, including duration and compensation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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