is it possible to regret on restraint of trade letter or ask for compensation ?
I have signed a contract under witness of lawyer , that I'm not allow to lure customer from current company ( no effective date listed ) Does it mean lifetime ? cuz I'm gonna open my own company soon
Question: What kind of compensation you looking for from your current organization?
Trade Letter / Non-Compete Letter should refer under Company Act 1950:
Section 28 - Agreement in Restraint of Trade Void: "Every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is to that extent void" Where:
Restraint of Trade Void / Non-compete in employment agreements are not enforceable in Malaysia. Section 28 provides that every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind, is void. Malaysian Courts have interpreted Section 28 to mean that where the non-compete clause attempts to cover a period after the employment has ended, it will be void and unenforceable against the employee. It does not matter that the non-compete clause appears reasonable, or is only for a short period of time.
REMINDER: Whenever the company or anyone ask you to sign any document or letter example - offer letter, misconduct, benefits, policy, job description, trade agreement/non-compete agreement etc., you should read first and understand. If you don't understand the agreement, you should ask/question them back as many as can before you sign. This to avoid during your resignation or anything happen when employee found out about the agreement, most of command statement is "I don't know anything". Reality, you should know surrounding before you make your decision to sign that letter/agreement. Hope above information is clear.