Putting up this post to share on a common employer's scare tactic.
Some of us may have come across the below clause in our Offer Letter.
Taken from Donovan & Ho.'s article's quote:
QUOTE
“For a period of 12 months after cessation of your employment with the Company for whatever reason, you shall not be directly or indirectly engaged or interested in (whether as employee, principal, agent, consultant or otherwise), or conduct any trade or business in Malaysia which is wholly or partly in competition with any business carried on by the Company at the date of cessation of your employment.”
And just to let you know, this article stated in your Offer Letter is not enforceable. Meaning, it's not binding to you or any employees.
As quoted from the link:
QUOTE
Non-compete clauses in employment agreements are not enforceable in Malaysia due to Section 28 of the Contracts Act 1950. Section 28 provides that every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is void.
Malaysian Courts have interpreted Section 28 to mean that where the non-compete clause attempts to cover a period after the employment has ended, it will be void and unenforceable against the employee. It does not matter that the non-compete clause appears reasonable, or is only for a short period of time.
To explain further:
QUOTE
Simply put – there’s nothing to stop a former employee from joining a competitor (provided of course they do not use their former employer’s confidential information). The rationale behind Section 28 and the courts’ decisions is that no one should be prevented from pursuing legitimate work or business. Further, employees with specialised skill and knowledge in niche areas would naturally only be able to work within a small industry – preventing them from working with competitors would effectively limit their ability to make a living.
This is to protect the welfare of those working in small industries where there are only several specialized companies providing the service/ offering.
Only learnt of this non-binding clause when an ex-junior of mine got into some "trouble" with the ex-company he worked for. However, the boss could not sue him when he jumped over to a larger competing firm, as the clause is not enforceable in Malaysia's Labour Law.
Learn your rights as an employee and don't be bound or bullied by employers.
Read full article here:
http://dnh.com.my/if-i-cant-have-you-nobod...ment-contracts/This post has been edited by sweet_pez: Dec 26 2017, 04:34 PM 
Nov 18 2008, 10:08 AM
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