Non Compete Contracts are essential tools for businesses in Singapore to protect their legitimate interests, trade secrets, and competitive advantage. These agreements are particularly relevant when employees or contractors have access to sensitive information or strong client relationships. While Singapore courts will enforce Non Compete Contracts, they must be carefully drafted to ensure reasonable scope, duration, and geographic restrictions. The agreement must balance the employer's need to protect business interests with the employee's right to earn a living, all while complying with Singapore's employment and competition laws.
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1. Parties: Identification of the contracting parties with full legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Restrictions: Detailed description of prohibited activities and competition restrictions
5. Duration: Time period for which restrictions apply
6. Geographic Scope: Physical/territorial limitations of the restrictions
7. Consideration: What the restricted party receives in exchange for the restrictions
8. Confidentiality Obligations: Protection of confidential information
9. Governing Law: Specification of Singapore law as governing law
1. Garden Leave: Provisions for paid leave during notice period - typically used in employment-related non-compete agreements
2. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers - used when protection of business relationships is crucial
3. Severability: Provisions for partial enforcement if some terms are found invalid - recommended when agreement contains multiple restrictions
4. Remedies: Specific remedies for breach including injunctive relief - used when specific enforcement mechanisms are desired
1. Schedule of Restricted Activities: Detailed list of specific activities prohibited under the agreement
2. Schedule of Restricted Territories: Detailed list of geographic areas where restrictions apply
3. Schedule of Competitors: List of specific competitors or competing businesses that are explicitly covered by the restrictions
4. Schedule of Consideration: Details of compensation or benefits provided in exchange for restrictions
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