This limits unfair practices within the industry and ensures a stable workforce that minimises disruptions to students, EtonHouse said. However, employees are subject to a non-solicitation clause, which prohibits them from approaching other staff or customers for business within six months of leaving. “We respect our staff’s decision should they decide to move on and seek other opportunities within the same industry.”
Typically, clauses last for six months to a year, and even longer in rare instances, said Mr Paul Ng, chief executive of recruitment firm TG Group.Ī spokesman for education group EtonHouse said it does not include a non-compete clause in employment contracts for childcare staff and educators as the industry is small and the skill set is niche. Other common attributes of sectors where non-compete clauses are prevalent include a high level of innovation, as well as those where key players are sworn rivals, or which have a reputation for poaching one another’s key employees, he said. Mr Ding said non-compete clauses tend to be more prevalent where employees operate in markets with a few firms, each with substantial influence and market share. “However, for non-unionised companies, the employment terms are left to the contracting parties to negotiate and agree on,” NTUC said. “When engaged by the Ministry of Manpower and Tafep, employers have generally been cooperative in removing or not enforcing unreasonable non-compete clauses,” said the labour movement.
Out of the 20 cases, two of them were referred to the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) and another two were referred to NTUC’s legal clinic for advice from volunteer lawyers. “Most of them asked about the reasonableness of the clauses and how they could approach their employers to waive the clauses.” NTUC said 20 union members sought advice and assistance from the Tripartite Alliance for Dispute Management on the non-compete clauses in their employment contracts in 2022. Mr Ding said that it is “unfortunately fairly widespread” for employers to include a non-compete clause just to dissuade employees from joining a competitor, even though they might not be able to show a legitimate interest to protect, and their interest is already sufficiently protected by other contractual terms. Instead, human resource staff should work with company management and lawyers to identify specific roles that a non-compete clause has to apply to, stating clear reasons, she said.
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