I started working for this company less than 2 weeks ago and I've signed a contract which states that I should not work for any companies that is in direct competition with this company within 6 months of termination of the contract. According to the contract, serious action would be taken against me and/or my future employer (including law suits) for any perceived damage loss. I've recently got a job offer from another company (which is the direct competitor) which offer a MUCH higher pay than my current position.

My questions are:

1. How enforceable is this clause? Are there many cases like this brought to court in Malaysia? From what I know, in Malaysia, you need to queue for years to even get your case into court so most people don't sue unless you're big enough and the case is serious enough.

2. Since I've only worked for this company for less than 2 weeks and I'm still under probation, is this clause enforceable?

3. Any advice given will be much appreciated.

The company I'm working for is not very big, only about 14 staff members in Malaysia.

Thanks in advance!

This post has been edited by seen: Oct 26 2006, 11:59 AM

Moved from E.Essential

Actually, because you signed the agreement, there is nothing much u can do about it. But pay a visit to the labour department and seek their advice and its FREE. Since u r still new, maybe still got jalan....

It's quit common practise. You can ask the new company let you start as in house staff/trainee for 6 months before move to supposed position to avoid the heat.

Where do I go for that? Was overseas for the past 6 years so this is actually my first job in Malaysia so I'm kinda lost with things like that


Hmm good idea....but the new company doesn't know that I'm working with their competitor now since they offer me the job like 1 month ++ after the interview. Would they withdraw the offer if they knew?