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 Non-Compete agreement

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mentality88
post Feb 8 2010, 09:21 PM

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QUOTE(seantang @ Feb 8 2010, 09:36 PM)
In my opinion, there's no loophole. Sounds like it's clearly written and you've signed it. And there's tonnes of jobs an audito can do besides joining a competitor. Looks clearcut to me. You simply have to decide whether they will sue or won't sue if you go ahead to join a competitor. Alternatively, you can try to negotiate to compensate them to release you from the contract.
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Ya, this is the right approach: negotiation.

Non-competition clauses are enforcable in Malaysia. It is very common in audit, management consultancy, system integrators and recruitment.

Since alfondz has already made up his mind, I only can say good luck.
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.
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

 

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