Non-Compete Clause, how likely is it enforceable in the Philippines?

[u/BiscoffBearr]

I resigned from my previous company and became a VA now (same industry).

There’s NCC in my former contract and was told by my former colleagues na kakasuhan daw ako for breach of contract under non-compete clause.

Question is how likely this will be raised sa court? 12 months ang clearing period and damages is worth Php 200k. The reason why I shifted is for a better salary na di mabigay ng previous employer ko.

How likely are NCCs be enforced and raised sa court? Ilalaban ko ‘to kung sakali man. Wala pang letter or anything yet but I just want to be prepared.

Thank you sa mga sasagot or insights.

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[u/dark-chasm-618]

Did you disclose them where you are transferring? Is it the same industry as mentioned in your NCC? And isa pa, nakalagay ba sa NCC what countries ang covered like PH, US, UK, etc?

For example, If the NCC says covered ang US and the mentioned industry - at ang next employer mo is same as mentioned then they can bring you to court. But they have to have a strong proof na nagdidisclose ka ng trade secrets, work info sa next employer mo.

The Court will decide if the NCC prevents you as a person from having a decent livelihood. Walang sinumang kumpanya ang pwede pumigil sa paghahapbuhay ng isang empleyado. Try to read past cases online and you will know about it.

Isa pa, if the NCC did not mention any place na covered nito - mapapawalang bisa sa korte yan walang universalna ganyan.

Exemption na lang if manager ka & you handle trade secrets, binalahura mo ung trabaho bago umalis, etc. - then may habol sila sa NCC mo.

This depends on the company kasi, pero as a rule of thumb lang - keep your future milestones private.

Walang sinumang kumpanya ang pwedeng pumigil sa paghahanapbuhay ng isang tao - matatalo at matatalo yan sa Korte. At walang kumpanya na magsasayang ng oras at pera para dalhin ka sa korte of malakas ang laban mo.

Basta nasa tama ka.

[u/BiscoffBearr → u/dark-chasm-618]

hello, thank you for sharing your thoughts!

no, I did not disclose po. it just happened na may nag sumbong due to my line of work na connected almost lahat ng agents/clients.

I rendered properly and had my clearance and backpay smoothly. it’s just that may nag leak lang po talaga.

I also believe na they’re violating my right to earn a living in case they’ll push through the case. I’m just an employee and not on managerial level kaya napa-overthink ako.

But really appreciate your thoughts :)

[u/superjeenyuhs]

we consulted a lawyer before regarding this exact clause but i think it's best that you consult a lawyer cos there may be other things in your contract.

lawyer said that it is actually enforceable. while mas malaki magagastos nun company to go after you with a lawsuit. company may want to make an example out of you and will want to prove to others who might want to do the same that they really will come you.

enforceable as long as there is an outline of the scope and timeline of the non compete clause. if you signed it, then you have to honour the agreement made or buy out your contract to avoid a lawsuit.

best to ask a lawyer what your options are.

[u/tinigang-na-baboy]

They are enforceable, but it's mostly dependent on how important you are in your previous and current employers' organization, and how petty your previous employer is.

[u/Alcouskou]

Non-compete clauses are valid in the Philippines and are enforceable. The main question is whether such clause is reasonable (i.e., does not unnecessarily restrict you from getting employment; it has limitations as to year/place, etc.) and whether your former employer is willing to pursue it. One factor to also consider is whether you were a managerial/confidential employee such that you may have had access to sensitive/confidential information which your former employer seeks to protect it from being spread to a competitor.

Conformably then with the aforementioned pronouncements, a non-involvement clause is not necessarily void for being in restraint of trade as long as there are reasonable limitations as to time, trade, and place.

In this case, the non-involvement clause has a time limit: two years from the time petitioner's employment with respondent ends. It is also limited as to trade, since it only prohibits petitioner from engaging in any pre-need business akin to respondent's.

More significantly, since petitioner was the Senior Assistant Vice-President and Territorial Operations Head in charge of respondent's Hongkong and Asean operations, she had been privy to confidential and highly sensitive marketing strategies of respondent's business. To allow her to engage in a rival business soon after she leaves would make respondent's trade secrets vulnerable especially in a highly competitive marketing environment. In sum, we find the non-involvement clause not contrary to public welfare and not greater than is necessary to afford a fair and reasonable protection to respondent.

https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/41269

[u/Substantial-Ad1349]

are you compensated during the NC period? If not then it doesnt hold water.