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Non Compete Severance Agreement Template for Singapore

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Key Requirements PROMPT example:

Non Compete Severance Agreement

"I need a Non Compete Severance Agreement for our departing Chief Technology Officer who has access to sensitive technical information, with a 12-month restriction period and coverage across Southeast Asia, to be effective from March 1, 2025."

What is a Non Compete Severance Agreement?

The Non-Compete Severance Agreement is utilized when an employer wishes to protect its legitimate business interests following an employee's departure while providing financial compensation. This document is particularly relevant in Singapore's competitive business environment, where protection of trade secrets, customer relationships, and proprietary information is crucial. The agreement must be carefully drafted to ensure enforceability under Singapore law, with reasonable restrictions and adequate consideration. It typically includes detailed provisions on restricted activities, geographic limitations, duration of restrictions, and severance payment terms.

What sections should be included in a Non Compete Severance Agreement?

1. Parties: Identification and details of the employer and employee

2. Background: Context of employment relationship and reason for agreement

3. Definitions: Key terms used tHRoughout the agreement including relevant legislation references (Employment Act, Competition Act)

4. Severance Payment: Details of compensation amount, payment terms, and timing of severance payments

5. Non-Compete Obligations: Specific restrictions including duration, geographic scope, and prohibited activities in compliance with Singapore law

6. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

7. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and enforcement provisions

What sections are optional to include in a Non Compete Severance Agreement?

1. Non-Solicitation: Additional restrictions on soliciting employees, customers, or business partners

2. Return of Company Property: Requirements and timeline for returning company assets and materials

3. Cooperation in Transition: Terms for assisting with transition of duties and handover responsibilities

4. Mutual Release: Provisions for mutual release of claims between parties

What schedules should be included in a Non Compete Severance Agreement?

1. Schedule A - Restricted Activities: Detailed list of specific activities prohibited under the non-compete clause

2. Schedule B - Severance Payment Details: Breakdown of severance payment structure, timing, and conditions

3. Schedule C - Confidential Information: Specific categories and examples of protected confidential information

4. Schedule D - Geographic Scope: Detailed definition of geographic areas covered by the non-compete restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses

























Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore. While not directly regulating non-compete clauses, it provides the fundamental framework for employment relationships and is particularly relevant for termination and severance provisions.

Competition Act (Chapter 50B): While primarily focused on business competition, provides important context for reasonable restraint of trade considerations in non-compete agreements.

Common Law Principles - Restraint of Trade: Singapore courts follow common law principles regarding restrictive covenants. Courts will only enforce non-compete clauses that are reasonable in geographic scope, duration, and restricted activities, and necessary to protect legitimate business interests.

Contract Law Requirements: Agreement must comply with Singapore contract law principles including valid consideration, clear and unambiguous terms, and proper contract formation requirements.

Reasonableness Test: Courts will assess whether the restriction is reasonable, whether there is adequate compensation, whether it protects legitimate business interests, and whether it goes beyond what is necessary to protect those interests.

Geographic Scope Requirement: Non-compete restrictions must have reasonable geographic limitations that are justifiable based on the company's business reach and legitimate interests.

Duration Requirement: Time period of the non-compete must be reasonable and justifiable based on industry standards and business protection needs.

Consideration Requirement: Adequate severance payment or other consideration must be provided to make the non-compete clause enforceable under Singapore law.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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