Moving to Singapore - non-compete

[contractor1968]

Hi,

I have been contracting at a UK company via a recruitment agency (I have a limited company but my contract is with agency and not end client) for two years. I am now moving to Singapore and the company I work for are happy for me to relocate to Singapore and move to a Singapore based agency and continue working as a contractor.

I have a clause in my contract saying my company and its staff cant work for the company for 6 months. Is this enforceable in Singapore? The agency I am currently with can't support my move due to VISA requirements etc hence the need to complete this 6 month contract and then move to a vendor in Singapore.

Many thanks,

[northernladuk]

Does the agency also recruit for Singapore roles? If not then the handcuff is unfair and not reasonable. The agency can't do business with the Singapore office so would unfair of them to restrict your work when there is no money to be made for them either way.

Handcuffs are only enforceable when the agency can prove loss or damage to their business. Not having a say on the Singapore roles means they are not.

[contractor1968]

No, the agency doesn't do business in Singapore and can not sponsor my VISA. I have actually offered them to see if they can and they have said it is not something they can support.

So you think I have a fair chance of getting out of this one? My current agency has not made a fuss or said anything as my move is not 100% set yet. I will see what they say and maybe get legal advise depending on their response?

Thanks

[northernladuk]

No, the agency doesn't do business in Singapore and can not sponsor my VISA. I have actually offered them to see if they can and they have said it is not something they can support.

So you think I have a fair chance of getting out of this one? My current agency has not made a fuss or said anything as my move is not 100% set yet. I will see what they say and maybe get legal advise depending on their response?

Thanks

I am not sure I could have made it any clearer.

[contractor1968]

Ah, was enjoying our chat, wanted to lock you in for one more reply

[DirtyDog]

So you think I have a fair chance of getting out of this one? My current agency has not made a fuss or said anything as my move is not 100% set yet. I will see what they say and maybe get legal advise depending on their response?

Type "are handcuff clauses enforceable" into Google.

“Crucial to the argument for restricting the contractor’s rights is the ‘reasonableness’ of the claim,” says David Royden, a partner with the employment law specialist firm Layton’s Solicitors in Manchester.

“Agencies must bear in mind that restrictive covenants must go no further than is reasonably necessary to protect their legitimate business interests as otherwise the covenants will be unenforceable. Defining what is ‘reasonable’ or not can involve complex considerations , as can ‘what is a legitimate business interest.’ A covenant that restricts a national sales director may not apply to a local sales representative, yet the agency may use the same clause. “

If they tried to enforce it, it would be unreasonable, since they have no legitimate business interest to protect - they cannot provide any service to you or the client any more, so there is no interest.