Does signing a restriction on joining a competitor make it enforceable?
A non-compete restriction needs to be assessed against the business interests it protects, the information available to the employee, the activities restricted, its geographical scope and its duration. Broad contractual wording does not mean that every part of it will be enforceable. Employers should first identify whether they seek to protect customer relationships, technical information or other business interests, then design the terms accordingly.
How do confidentiality and non-compete obligations differ?
Confidentiality obligations concern the use and disclosure of information; non-compete obligations concern particular business or employment activities. They may work together, but a general clause cannot replace specific information-protection measures. Employers should also keep records of how customer lists and technical documents are managed and what employees actually access.
What should an employer prepare?
Prepare the employment contract, job responsibilities, proposed restricted activities, duration and geographical scope, and the information requiring protection. THAIHOUSING can review the terms alongside the employment and contractual arrangements and explain where their scope needs adjustment. If a dispute arises, the actual conduct and evidence must then be examined.
Why should the same non-compete clause not be applied to every employee?
Different roles have access to different customers, prices and technical information, so the interests requiring protection also differ. Start by identifying the information the employee actually accesses and the competing activities they might undertake, then consider the restriction's scope. For example, a sales manager with access to core pricing and an administrative employee without that access should not receive identical restrictions simply because they use the same employment template. This is general guidance, not a conclusion on enforceability in a particular case.
What evidence should be organised if a former employee is suspected of breaching the clause?
Preserve the signed version, records of responsibilities and access rights, departure handover documents, and lawfully obtained evidence of specific conduct, organised chronologically. Separate suspicions, known facts and provable losses; joining a competitor alone should not automatically be treated as a breach. THAIHOUSING can analyse the issues in dispute and possible next steps against the contract and available evidence.
Do the employee's other employment opportunities matter when assessing reasonableness?
Yes. Section 5 of the Unfair Contract Terms Act limits the enforcement of occupational restrictions that are not void but impose a burden beyond what would ordinarily be expected to the extent that is fair and reasonable. Relevant considerations include geographical scope and duration, the employee's ability and opportunities to undertake other work or transactions, and both parties' legitimate interests. The terms should therefore explain why the restrictions are proportionate to the interests the employer seeks to protect, rather than simply adopting a fixed period.
Related legal service
Sources
- 司法部提供：不公平合同条款法第5条（泰文）
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