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May 3, 2011

The Enforceability of Non-Competition Clauses in Thailand

Labour & Employment 2009, Digital Guide, Executive View Media Limited

The essence of a contract is the fulfillment of each party’s obligations to perform under the specified terms and conditions to accomplish the contract’s objective. A contract of employment is also a reciprocal agreement—the employer must fulfill its obligations to the employee and the employee must perform its duties for the employer. Failure by one party to perform the duties as agreed will result in the other party having the right to make a claim for compensation for such breach. General provisions contained in a contract of employment (such as scope of work, payment terms, employee duties, benefits, annual leave, and so forth) are common in all jurisdictions. However, details for each contract of employment will vary depending upon the seniority of the position. This is particularly true for higher-level positions involving trade secrets and confidential information, for which specific terms to protect the employer’s interest are commonly included. Such protection will generally take the form of a non-competition clause.

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