Legal Help: I am transferring to the competitor

[birthdaygirl]

Hi! Just have a question to lawyers or to those who have experienced being pirated.......

My employment contract with my current employer includes a clause that I should not be employed by a competitor within 2 years after resignation or termination. Well, I applied to the competitor anyway since they have better pay and benefits. My current company only has the basics - 13th month, VL, SL, etc.

Anyway, the competitor wants to hire me. Can my current employer sue or make any action against me if I take the competitor's offer?

[KuyaDanny]

If there is a noncompete clause in your contract, it should specify a remedy if you violate it. What does the clause say?

Have you disclosed your noncompete to your new/prospective employer? Would they still hire you if they knew? If they would, why don't you ask them to indemnify you if ever you get sued by your current employer?

[birthdaygirl]

Hi! my contract includes the ff. statements:

"....... From the date you stop working for ***, whether by resignation or termination, you must not enter and/or be employed into a similar or competing company/business within a period of two (2) years, within the territory of thePhilippines."

There are no statements made re: consequences if I work for a competitor.

Anyway, there have been other employees in my current company who have transferred to a competitor. However, these are people who have just stayed for several months. I guess I'm just a bit scared since it would be a bit easy for my current company to find out where I transferred since word travels fast in my industry.

[KuyaDanny]

I think you should disclose this to your prospective employer. There is a risk that your ex-employer might one day sue you and the new employer to get you to be removed from your job. Although I can't assess how successful the action will be, you might as well let your new company know what they could be getting into.

[immortalscythe]

as far as i know, if the said 2 yrs of rendering work on your company means "bond'. you may pay the said bond fee in order for your current company allow you to set free. and also ask your prospect company if they are willing to pay the bond for you or else there's no way you can get out of your current company that fast or else they might sue you for not finishing your contract.

[KuyaDanny]

If the quoted clause is complete, I don't think there is a bond. It seems to me the noncompete clause is simply there to prevent the competitors from benefiting from any proprietary information or special skills the employee may have acquired from the previous employer.

[council]

Hi! my contract includes the ff. statements:

"....... From the date you stop working for ***, whether by resignation or termination, you must not enter and/or be employed into a similar or competing company/business within a period of two (2) years, within the territory of thePhilippines."

There are no statements made re: consequences if I work for a competitor.

The thing is...

while there is no written consequence, your violation of the above terms may be enough grounds for a breach of contract. And that in itself translates to money if the company decides to pursue. They may find out that the competitor has some of their proprietary information. And since you're the last one who left, you may be left holding the bag, so to speak.

[bloodasp]

which industry is this? most contracts i've seen have this. but where else would i move but to another software company right? and i would most probably be hired because of my industry specific experience (say financial software). in the software industry i think this is just to keep a hold of employees and as what was mentioned earlier to prevent disclosure of trade secrets, which should be standard.