Restraint of Trade: A Singapore Perspective

Abstract

The position in Singapore with regards to restraint of trade clauses in employment contracts is largely similar to the position in the United Kingdom. Nonetheless, while the authorities in the United Kingdom are divided on the validity of “non–poaching of employees” type of restraint of trade clauses, the very recent Singapore Court of Appeal decision of Man Financial (S) Pte Ltd v Wong Bark Chuan, David has endorsed the validity of such clauses whole heartedly after an extensive review of authorities from the United Kingdom, Hong Kong and Australia. In addition the court in Man Financial (S) Pte Ltd v Wong Bark Chuan had the opportunity to consider several other related issues such as the significance of the fact that the employee was specifically paid for entering into the restrictive covenant, the significance of the fact that the employee had expressly agreed to the restrictive covenant and the significance of fact that the employee received legal advice in relation to the restrictive covenant.