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 Non-Compete agreement

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TSalfondz
post Feb 9 2010, 04:12 PM

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yup..im a registered ISO 9001 auditor with IRCA. to maintain it i have to do a number of audits in a year.
dkk
post Feb 9 2010, 10:06 PM

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I seriously doubt that they can prevent you from working as an auditor for 2 years. There are thousands of auditors in the country, and they move from one firm to another all the time. If this were true, none of them will ever change jobs.

I suspect a competitor here should be interpreted as much less than "all firms offering auditing services" in SEA. If you don't want to ask your employers, you can ask MIA, IRCA, or any other professional body you belong to.
seantang
post Feb 9 2010, 10:43 PM

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QUOTE(alfondz @ Feb 9 2010, 04:12 PM)
yup..im a registered ISO 9001 auditor with IRCA. to maintain it i have to do a number of audits in a year.

Ohhh... I thought you were a public accounting auditor. They need licenses from the Ministry of Finance.

ISO auditors... no need license lah since ISO is not a regulated by any statutory body. It's basically just a private activity that companies choose to do.

This post has been edited by seantang: Feb 9 2010, 10:44 PM
mentality88
post Feb 9 2010, 11:03 PM

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QUOTE(dkk @ Feb 9 2010, 10:46 AM)
It is not enforceable if the restriction is too wide. If you're an auditor, and you're not allowed to get a job as an auditor in any other company, then you an never leave your current job. Ever. Until the day you retire. Unless you can afford to take a 2 year break.

It needs to be interpreted much more narrowly than that. An auditor needs to be able to change jobs, without retraining as a doctor.

The restriction also needs to be view from the point of view of the employer. The terms says you cannot work for a competitor of your employer. Not that you cannot work for any firms offering auditing services. There has got to be more than 11 companies in Malaysia doing auditing. Perhaps they are much smaller.

The point of the restriction is to prevent you bring trade secrets to a competitor or bringing your clients along.

I think the main problem is TS has been offered a job at a competitor of his present employer. One of the few the non-compete agreement is specifically aim at. He's phrasing the question in such a way as to show how absurd this restriction is (sorry to be so blunt).

Unless you've specialized to such a degree that the part of auditing you've focussed on is so narrow, it's only possible to get any job in one of those 11 companies, it'll be very difficult for you to get it set aside, and go work for one of the competitors.
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Registered ISO 9001 auditor with IRCA - I believe the restriction is narrow enough to enforce the non-competitive agreement. There are not many company offering ISO certification in the market. Knowing the company's pricing strategy or modus operandi for securing a contract is enough for the employer to seek a court action.
TSalfondz
post Feb 10 2010, 03:31 PM

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QUOTE(mentality88 @ Feb 9 2010, 11:03 PM)
Registered ISO 9001 auditor with IRCA - I believe the restriction is narrow enough to enforce the non-competitive agreement. There are not many company offering ISO certification in the market. Knowing the company's pricing strategy or modus operandi for securing a contract is enough for the employer to seek a court action.
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So, im supposed that im stuck here forever? the competitor im joining put 6 months period of restrain of trade which to me is quite accepteble.

However, i have a discussion with the GM from another department yesterday. He said, where im going is not a problem be it a competitor or not. As long i remain professional and did not disclose any confidential information bout the company. Does not mean that after two years can talk bad bout your past employer, revaeal all the secrets, approach the clients and all that. Im too nice to do all that biggrin.gif .
ps3roxor
post Feb 10 2010, 03:37 PM

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This post has been edited by ps3roxor: Jul 25 2019, 10:42 PM
TSalfondz
post Feb 10 2010, 03:38 PM

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No. the contract stated that you are not allowed to join the competitor in the period of 24 months after termination.
ps3roxor
post Feb 10 2010, 03:46 PM

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This post has been edited by ps3roxor: Jul 25 2019, 10:42 PM
TSalfondz
post Feb 10 2010, 03:52 PM

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QUOTE(ps3roxor @ Feb 10 2010, 03:46 PM)
This is just my personal opinion:"Screw them".

As for the potential benefits or consequences i'm sure you know, but for me I definately am not going to waste 2 years doing something else.

Possible solution: Inform the competitor's HR of the contract clause and perhaps ask them to come up with a job description that highlights some 'specialized' task/work or whatever.

Oh and by the way, the contract clause states South East Asia? What if the job description states: To serve clients in Global locations/Other regional locations?
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Ur opinion is alomst the same as mine...what i've been here for 5 years not sumwhat quite attached to them and i want to leave in good terms.

As for asking the other HR to help, maybe i will talk to them once i join them.
mentality88
post Feb 10 2010, 10:57 PM

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QUOTE(alfondz @ Feb 10 2010, 04:31 PM)
So, im supposed that im stuck here forever? the competitor im joining put 6 months period of restrain of trade which to me is quite accepteble.

However, i have a discussion with the GM from another department yesterday. He said, where im going is not a problem be it a competitor or not. As long i remain professional and did not disclose any confidential information bout the company. Does not mean that after two years can talk bad bout your past employer, revaeal all the secrets, approach the clients and all that. Im too nice to do all that  biggrin.gif .
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Firstly, don't confuse between non-competition agreement with non-disclosure agreement.

If you have signed a non-disclosure agreement, the industry standard is to refrain you from telling your ex-employer's secret until:

- a court order requests you to reveal.
- the information become public.

If these scenarios don't happen, you suppose to keep the secret to the end of your life. You better check carefully if you have actually signed such an non-disclosure agreement before. A lot of people signed without understanding what it actually mean.

This post has been edited by mentality88: Feb 10 2010, 10:59 PM
Gravity
post Feb 11 2010, 11:25 PM

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i believe if u dont inform your ex employer which company u're going..i guess it should be alright...


Added on February 11, 2010, 11:27 pmand most importantly, u've been working there for the past 5 years. i believe u have paid off whatever u owe the company.

to the company, it may no longer be worth while to take legal action towards u since the cost is high biggrin.gif

This post has been edited by Gravity: Feb 11 2010, 11:27 PM
vey99
post Feb 12 2010, 11:03 PM

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QUOTE(alfondz @ Feb 8 2010, 03:39 PM)
Any feedback on this. Takutlah macam ni....  cry.gif
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jtksm reply liao u not sastify?

then go ur employer beg them edit the clause la.
Erictan1981
post Mar 21 2025, 11:34 AM

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QUOTE(alfondz @ Feb 8 2010, 03:39 PM)
I am resigning from my job this month as i get a good offer from a competitor to my current employer. I never realized that the employment contract i signed 5 years ago stated that i cannot join a competitior in south east asia for two years. so, i e-mailed Jabatan Tenaga Kerja Malaysia regarding this matter and this is what they replied:-

"syarat yang dikemukakan oleh majikan tuan adalah syarat biasa yang dikemukakan oleh kebanyakan majikan. Jika telah dinyatakan dengan jelas dalam surat perlantikan tuan dan tuan telah menandatangani surat perlantikan tersebut, maka tuan adalah tertakluk pada syarat tersebut. Majikan tuan boleh mengambil tindakan mahkamah terhadap tuan sekiranya tuan melanggar syarat tersebut. Tuan juga perlu manandatangani surat sampingan sekiranya diperlukan."

Any feedback on this. Takutlah macam ni....  cry.gif
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Hi,

How you solve it end up? Does formal employer have right to restrict you work in same client?
What if after you joined the new company, they send you work for same client?
You just perform duty on new company. Does formal employer have right to do so?

NoAFK P
post Mar 26 2025, 04:06 PM

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Read what is the content inside of any contract is a MUST!
coolrox86
post Apr 21 2025, 08:37 PM

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Most of the time, employer have their self-interest only if they want you to sign non-compete agreement. They don't understand situation might change, employee might jump to another competitor company to prolong his expertise and profession. Exchange of skill and learning from each other is a norm nowadays.

On the other way, employer can protect themselves, if their design is copied 100% directly on another company, causing lost of their existing business, and lost of reputation if those design has gone wrong. By that way, case could be investigated, and compensation or forced resignation by law, is deemed reasonable.

However, no worry. Continue to work as your profession in the competitor company, no need to tell anyone too detailed about past job experience. Don't tell your former colleague where you are now. As long as you work professionally, never misuse info and design from previous companies blindly, then it should be ok.
Roadwarrior1337
post Apr 21 2025, 08:42 PM

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Suggest u respect the contract.

If cannot then cannot. One way is to seek exception at budi bicara of your employer

Else jump to a non competitor ie bank or something and lay low for a while

2 years is quite excessive but yeah it’s in the contract

If u have the contract u signed earlier u can argue this doesn’t have it and it was not make known to you …can try and then threaten to labour court


But if it has it then even u tea lady also cannot join for 2 years
AbbyCom
post Apr 21 2025, 08:45 PM

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QUOTE(Erictan1981 @ Mar 21 2025, 11:34 AM)
Hi,

How you solve it end up? Does formal employer have right to restrict you work in same client?
What if after you joined the new company, they send you work for same client?
You just perform duty on new company. Does formal employer have right to do so?
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This thread from 2010 and TS also no log in since 2012.
pysh
post Apr 21 2025, 08:47 PM

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i'd recommend to consult with the new hiring company.. they probably know better and have "loophole" for u

coyouth
post Apr 25 2025, 04:27 PM

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Generally, in Malaysia, post-employment non-compete clauses in employment contracts are considered void and unenforceable under Section 28 of the Contracts Act 1950. This section states that any agreement that restrains someone from exercising a lawful profession, trade, or business is void to that extent.
Mixxomon
post May 21 2025, 10:03 AM

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It's very late but I will give you an actual case where I 'breached' the non-compete clause by joining a competitor.
Many say must follow the contract but in Malaysia, this is not enforceable. Some more resourceful company may threaten LOD and ask to see you in court but you can just reply this section as per above poster said :

QUOTE
Generally, in Malaysia, post-employment non-compete clauses in employment contracts are considered void and unenforceable under Section 28 of the Contracts Act 1950. This section states that any agreement that restrains someone from exercising a lawful profession, trade, or business is void to that extent.


I'm in a business where poaching and joining competitors is very common. All the time this clause is to scare the ignorant, but the really capable ones will just join the competitor. Till today no one was legally sued for breaching this non-compete clause.
Some will threaten saying they will sue under trade secrets act but it's extremely hard to prove unless you blatantly download some secret formula or specs sheet and blatantly hand it to the competitor.

This post has been edited by Mixxomon: May 21 2025, 10:04 AM

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