Confidentiality And Non Compete Agreement Philippines

APPLICABLE LAW. This Convention and its interpretation shall be governed by the laws of [State, Province or Territory]. In maintaining the validity of the opt-out clause, the High Court held that “a opt-out clause is not necessarily non-existent because it impedes trade as long as there are reasonable restrictions in terms of time, trade and place”. Applying these parameters, the court decided that Daisy`s participation clause had a time limit: two years from the end of her employment in ABC Plans. In addition, it is also limited to trade, as it only prohibits Daisy from participating in pre-need operations similar to ABC plans. The court continued: “Most importantly, Daisy, being the senior assistant vice president and Territorial Operations Head for ABC plans and responsible for developments in Hong Kong and ASEAN, was introduced to confidential and highly sensitive marketing strategies or the activities of ABC Plans. Allowing Daisy to engage in a competing business shortly after her departure would make the company`s trade secrets vulnerable, especially in a highly competitive marketing environment.¬†As a penalty for violating the non-competition clause, the court ordered Daisy to pay PHP 100,000 as lump sum damages. (Daisy B. Tiu v. Platinum Plans Philippines, Inc., G.R.

No. 163512, February 28, 2007). No no. There is no legal or customary obligation for a non-competition clause to be notarized. However, it must be signed by the party against whom enforcement is sought in order to be enforceable. The “secrecy of company information and/or documents” carries an obligation that all records and documents as well as any information relating to the activity or affairs of the employer or any of its associated enterprises be confidential and that they are not disclosed or reproduced in an unauthorized manner by an employee during or after employment. In order to enforce this confidentiality clause and to ensure strict compliance with the confidentiality clause, the employer may insert a provision allowing it to impose liability in the event of damage and forfeiture of forms of compensation, including commissions and inducements against the wandering worker in the event of an infringement. Prohibitions on competition are often limited or unenforceable because they are restrictive.