askST Jobs: Can a company enforce a non-compete clause after laying me off?

askST Jobs: Can a company enforce a non-compete clause after laying me off?


In this series, business correspondent Timothy Goh offers practical answers to candid questions on navigating workplace challenges and getting ahead in your career. Get more tips by signing up to The Straits Times’ Headstart newsletter.

Q: Can employers stop former employees from joining competitors after making them redundant?

In Singapore, non-compete clauses are generally unenforceable unless the employer can reasonably show they protect legitimate proprietary interests and are reasonable in scope, geography and duration.

Non-compete clauses are not likely to be enforceable against employees who do not have access to trade secrets or highly confidential business information, said National Trades Union Congress assistant secretary-general Patrick Tay.

“This is because, where there are no legitimate interests being protected, such clauses would be considered an unreasonable restraint on an employee’s ability to earn a living,” he added.

Tay noted that employees should not be asked to sign additional non-compete clauses during “offboarding”, such as during a retrenchment exercise.

If this happens, employees should refrain from signing immediately and review the terms carefully.




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