Post-Employment Restrictions: Non-Compete, Solicitation & Confidentiality
Gone were the days where employees stayed loyal only to one employer till retirement. Following the growth in living standards and education in Malaysia, employees tend to seek for better career opportunities and progression. Leaving a job to pursue a better opportunity and career progression are becoming social norms. The raging COVID-19 pandemic situation has also magnified the rate of workforce turnover in the market. Employers spend considerable time, money and effort in developing strong relationships with suppliers, customers and employees. These strong relationships contribute greatly to the success of the business.
In such circumstances, employers would require legal protection to protect their business interests to prevent poaching of customers and staff by their former employees. A non-solicitation agreement or clause is an agreement between employer and employee whereby employee agrees not to solicit any of the employer’s business customers or colleagues after the employee left to join a competitor or be a competitor of the employer.
