is it normal to have "Non Competition" condition in job offer letter? the condition means that i should not have commit any business with their client (directly o indirectly) for 1 year duration following the date i quit from their company.

put it in this scenario:
H is a client for both Company E and Company M.
let's say i agree with this condition, take the job offer, then start working in company E and handle H's project. after few months, i have a another job offer from company M which also handle H's project.
i know this "Non Competition" condition definately have some impacts during career change. How deep will the impact be? Will company M just trun away because i am tied to this "non competition" condition?

any advice o opinion?

if you are in the software, industry, that's pretty common.
in fact, some even state up to 2 years!

yup, its common to protect the company, some staff can steal the company's customer

Non competition clauses in an employement contract are not valid clauses.

Just sign the darn thing and just forget about this clause. Such clauses are useless in the eye of the law. Unless of course your company has signed an MOU with a specific company or their competitor which in any case it normally doesn't happen.

Some other conditions in an employement contract that are not valid are as follows:-

1) Your contract term is 12 months, if you quit you have to pay 12 months pay - This is not valid as under the law if i'm not mistaken it's either 1,2 or 3 months pay and then u can leave.

2) You must serve the full notice of resignation if not you pay certain amount of the monthly salary - Whatever the resignation term is there's a threshold that you need to pay. (again it's 1,2 or 3 months) sorry i forgotten. Company can't sue you coz you chose to leave the next day but of course u need to pay some amount.

3) You've sign the offer letter now you must join us if not I sue you - This is not valid as well. Signed offer letters are just acknowledgement of how much the company pays you. It's used for proving how much your future company MUST pay you but not a contract that you must join them.

4) You cannot join a company that has been your current company's client - Not valid as well, but usually you gotta becareful as most of the time verbaly your current company's clients would have some understanding not to take ppl from your company.

5) I send you overseas for 2 years, you come back you must work for us for 2 years if not I sue you or you pay us certain amount - Nope not a valid clause in an employement contract.

Can't think of any other things at the moment.

Mind to ask for clarification regarding this. Usually, if the company wants to send to training (expensive or overseas) and they said that they will bond you for a period, let's say 1 year, how to deal such matter?

yeah want to know too ..

Are you a lawyer or in the legal profession? Because a lot of companies are doing this and I'm pretty sure they've consulted their legions of lawyers.

On your pt1:
I was a contract worker once. My contract states if i leave before my contract ends i must pay back 2x salary of remaining months.

pt4:
This is more likely a company guideline rather than a law. Usually the companies have some sort of informal understanding on this.

pt5:
Training bond is not considered part of the employment contract IIRC, and how long they bond you is subject to agreement by both parties. I hears 1 company bonds for 3 years for a 3 month external training in Japan. But i guess once you've signed this training bond it is legally binding. BTW, I'm bond for a year after a 3 mths external training.

How about if there's no written agreement regarding the bonding and the training? But you were informally told during the interview that the company will send you for training and you'll be bonded for it. Let's say that it's also not stated in the offer letter or employment contract. How to deal with this type of problem?

Again IANAL (I Am Not A Lawyer) but I believe that in some cases oral agreements are legally binding.

In my case all overseas training exceeding x days or $x is automatically bonded. They do send out a legal e-mail which you have to digitally sign but I guess it's more of a formality than anything.

Why can't you all do some research man.. anyway hope the following answers your questions..


TERMINATION OF CONTRACT OF SERVICE

What is the notice period required?

The employer and the employee to a contract of service may at any time give to the other notice of termination of such contract of service.

The length of notice shall be the same for both employer and employee pursuant to the contract of employment. In the absence of the notice the period of notice under the Employment Act as follows:

Length of Employment Period of Notice Required:-
-less than 2 years at least 4 weeks
-2 years or more but less than 5 years at least 6 weeks
-5 years or more at least 8 weeks



C. EMPLOYMENT (TERMINATION AND LAY-OFF BENEFITS REGULATIONS) 1980

When does an employer become liable?

An employer shall be liable to pay termination and lay-Off Benefits payment as follows:-

Length of Number of days wages
Completed Service entitlement for each year
of employment
*1 year but less than 2 years 10
*2 years but less than 5 years 15
*5 years and more 20
*Pro-rata basis for an incomplete year.
Calculate to the nearest month.

Termination benefits are not payable for the following reasons:-

1. Where the employee attains the age of retirement as stipulated in the contract of service.

2. Where the employee commits misconduct inconsistent with the fulfilment of the expression or implied condition of his service after due enquiry.

3. Voluntary termination by the employee.

4. If the employee's contract of service is renewed or is re-engaged by the same employer under a new contract of service on terms and conditions which are not less favourable and where the renewal or re-engagement takes effect immediately at the ending of his employment under the previous contract.

Payment Of Termination Or Lay-Off Benefits

1. Any termination or lay-off benefits payment should be paid by the employer to the employee not later than 7 days after the relevant date.

2. Any employer who fails to comply shall be guilty of an offence.

Amount Of Termination And Lay-Off Benefits

What is an employee's entitlement?

An employee is entitled to termination or lay-off benefits payment as follows:-

Not less than -

1. 10 days wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for a period of less than 2 years; or

2. 15 days wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for a period of 2 years or more but less than 5 years; or

3. 20 days wages for every year of employment under a continuous contract of service with the employer if he has been employed by that employer for 5 years or more; and

4. pro-rata as respect of an incomplete year, calculated to the nearest month.

oh by the way...

A contract of service is an agreement whereby a person agrees to employ another as an employee and the employee agrees to serve his employer as an employee.

A contract of service can be either oral or writing.

BUT!!!! Any contract of service for a specified period of time exceeding one month must be in writing. Means if u work for a company for more than 1 month it must be in writing.

The terms and conditions of service must be made in writing and be given to all employees on or before the commencement of his or her employment.

THESE TERMS CANNOT BE LESS FAVOURABLE THAN TERMS STIPULATED UNDER THE EMPLOYEMENT ACT 1955 - this is the key thing.