Before officially joining the company, the company will issue a formal employment contract (Offer Letter) to new employees. Which should clearly list the employee’s position, department, benefits and other detailed regulations. This contract is very important to both employers and employees. But many people sign it hastily without reading it carefully.
When an employee wants to resign, he or she discovers that there is a clause in the contract. He or she signed that prohibits the employee from working in. The same industry/joining a competitor’s business within a fixed period after leaving.
The company; or when an employee resigns, the employer asks the employee to sign a contract, the effect of which is that the employee is prohibited from working in the same industry within a limited period after leaving the company.
Companies you may be interested in
Answer: Legally, once a contract is signed, it is binding on both parties.
However, according to Section 28 of the Contracts Act 1950 (Agreement in restraint of trade void). Except for the three circumstances stated in the provision, clauses restricting the employment of employees after they leave the company have no legal effect on ordinary employees.
In addition, the Court of Appeal of Malaysia also ruled and confirmed the position of the clause in the case, namely: the agreement to bind the transaction is invalid. Article 28 states that any obligation binding Hong Kong Phone Number List a person to engage in a lawful profession. Trade or business of any kind shall be void to the extent that it is binding, except.
Saving of agreement not to carry on business of which goodwill is sold
The party selling the goodwill agrees that the buyer will not engage in a similar business in a specific area. As long as the Vietnam Phone Number List buyer or another person who acquires rights in the goodwill sold by it engages in a similar business. It was reasonable for the court to assume. That the restriction was related to the nature of the business.
