Aug 21 2006, 03:40 PM
QUOTE(cktwai @ Aug 21 2006, 01:37 PM)
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.
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.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.
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.
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