April 19, 2011

Non-Competition Contract Enforcement

Thailand: Legal Developments, Tilleke & Gibbins Client Newsletter

Non-competition clauses are often inserted in employment contracts by employers for many reasons. But perhaps the main reason is to ensure that should the employee leave employment, the employer’s trade secrets, confidential customer information, confidential business know-how and other confidential matters with which the employee had contact remain protected and cannot be used by such employee in a manner detrimental to the employer. Some employers also insert non-competition clauses in employment agreements to deter employees from leaving for the competition. Many employers invest a substantial amount of time and money in training staff and do not want to see such investment benefit their competitors to whom employees may seek to migrate. This article examines how much protection these clauses really offer employers.

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