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Restrictive Covenants in Employment Law: When are They Enforceable?

Tay Yong Seng, Ang Ann Liang & Alyssa P'ng

[2018] SAL Prac 17

When an employee leaves a company, it is common for the company to try to enforce restrictive covenants and non-compete clauses against the employee. However, under the restraint of trade doctrine, the court will enforce a restrictive covenant only if it goes no further than reasonably necessary to protect a legitimate proprietary interest of the employer. Over the years, there have been various local and foreign decisions on the enforceability of restrictive covenants. This article reviews the salient principles and highlights some of the practical issues that arise in litigation.