Singapore: Restraint of Trade Provisions

It is common for employers to include restraint of trade provisions in employment contracts. However, such provisions are generally unenforceable unless it can be shown that there is a legitimate proprietary interest to protect and the restraint goes no further than is reasonably necessary to protect that interest. In Powerdrive Pte Ltd (“Powerdrive”) v Loh Kin Yong Philip and others [2018] SGHC 224, Powerdrive sought to enforce a restraint of trade provision against five of its former employees who had joined a competitor. The Singapore High Court held that that the restraint of trade provision relied upon by Powerdrive was too wide and therefore unenforceable. Continue reading