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Restrictive Covenants in an Employment Relationship – An Indian and Singapore Comparative Perspective

Veena Gopalakrishnan, Vinduja Menon, Atishay Kumar, Aishwarya Mysore, Tay Yong Seng, Shjoneman Tan & Kheshin Cheong

[2024] SAL Prac 10

In the contemporary landscape of rapid job transitions and the consequent challenges faced by organisations in safeguarding their proprietary interests, the integration of restrictive covenants into employment contracts has emerged as a vital strategy. This article delves into the legal nuances surrounding the enforcement of restrictive covenants in both India and Singapore, with a focus on employment contracts. Through a comparative analysis, it explores the divergent approaches taken by the legal systems of these two countries. While India’s legal framework scrutinises restrictive covenants within the ambit of s 27 of the Indian Contract Act 1872, Singapore relies on common law principles, especially in the employment context. The article elucidates the evolution of legal precedents and the key considerations influencing the enforceability of restrictive covenants, shedding light on the intricacies of protecting businesses’ interests amidst a dynamic employment landscape. The article further explores evolving market practices regarding confidentiality, non‑compete, and non‑solicitation clauses in India and Singapore, particularly within the technology sector.