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Unfair terms in Employment Letter

Worry Man  
Tue, 22 Jul 2008 09:30:49 PM  (Last updated: Thu, 07 Aug 2008 05:29:00 PM)

Dear Mr. KL Siew

I just learned that there is a clause in my Employment Letter that prohibits me from joining any other company that is in the same nature of business with my current company, within the first 2 years after my resignation.

I feel that this is a unfair term as my skill developed throughout these years is in this specified area.

Can the company sue me if I ignore that clause and join another company that is doing the same nature of business.


KL Siew
Tue, 22 Jul 2008 10:25:17 PM

This has something to do with they call "Restraint of trade". You can use the Internet to do some research on it. A lawyer is a more competent person to answer your question..

Jim Brown
Thu, 07 Aug 2008 05:29:00 PM

Dear Worry Man

In my experince in an MNC company, our company has the same clause.

When we check back with our HR expert, they said that such clause are useless in Malaysia. If this is borught to the industrial court it will be thrown out.

The reason is that your previous employer cannot restrict a person from making a living from his skill.

Take an example of a blind man (no offence please) whoes only skill is to do massage. Do you think that such limitation will hinder the blind man's livilihood? And do you think the industrial court will allow this?


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