Earlier this year, the Ministry of Manpower ("MOM") expressed that it intends to issue a set of guidelines on the use of non-compete clauses in employment contracts.
United States Employment and HR
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Earlier this year, the Ministry of Manpower ("MOM") expressed that it intends to issue a set of guidelines on the use of non-compete clauses in employment contracts. The guidelines are currently being finalized and are targeted for release later this year. While the guidelines are not legally binding on employers, they are strongly encouraged to adhere to any recommendations set out in the guidelines, as the MOM may review the employment practices of employers who fail to comply with the guidelines and impose restrictions on work passes. When the guidelines come into effect, they are also likely to be taken into consideration by the Singapore courts in deciding disputes in relation to the enforceability of non-compete clauses.
Various jurisdictions across the globe (e.g., the United States, Australia, and the United Kingdom) have, in recent times, taken a stricter approach towards the use of non-compete provisions. In Asia, non-compete clauses are extremely difficult to enforce in certain jurisdictions. In India, for example, non-compete clauses have typically been held to be void for being in restraint of trade under the Indian Contract Act 1872.
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