Rethinking non-compete clauses in employment contracts: A critique on Philippine laws and jurisprudence
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ID: 286446
2018
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Abstract
This research critiques the reasonable standards laid down by Philippine law and jurisprudence on the use of non-compete clauses in employment contracts in light of the modern trends of today’s industries. This uses the following questions as points of its discussion: (1) What are the standards and factors to be considered to determine the reasonableness and validity of non-compete provisions based on law and jurisprudence? (2) Are the standards laid down by law and jurisprudence in cases involving the validity of non-compete clauses adequate for human capital intensive industries? And (3) Whether or not the standards provided by current jurisprudence are responsive to the modern developments in Philippine trade and commerce? Current jurisprudence provides that non-compete clauses are valid as long as: (1) the time and territorial limitations are reasonable; (2) when there are reasonable restrictions on trade as it does not absolutely prohibit the employee from working, provided that it is not a competitor of the employer; (3) when it protects legitimate business interests of the employer and the restriction is not greater than what is necessary for reasonable protection of employer’s interest; and (4) when it is not against public policy and injurious to public welfare.
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| Authors | Rosales, Sarah Dominic G. |
| Journal | Malay Journal |
| Year | 2018 |
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