Talent Wars

Every organization aims to protect its business relationships, confidential information, and trade secrets, often through restrictive covenants in employment contracts.

In common law jurisdictions across Asia-Pacific (e.g., Singapore, Malaysia, Hong Kong, Australia, India), courts are generally reluctant to enforce these covenants. Conversely, civil law jurisdictions (e.g., China, Indonesia, Thailand, Vietnam, Philippines, UAE, Taiwan) are more permissive. However, all jurisdictions assess the reasonableness of these covenants based on factors like necessity, duration, geographical scope, and scope of restricted activity.

Our lawyers across Asia-Pacific frequently use restrictive covenants to shield employers from the risks posed by departing employees. The trends in Asia-Pacific remain largely unaffected by recent U.S. legal developments.

As employment lawyers, we often get asked about better ways to protect employers from these risks. We recommend combining restrictive covenants with other strategies (e.g., financial disincentives, notice periods, or payments) to achieve business goals.

This guide provides a comprehensive overview of restrictive covenants across various Asia-Pacific jurisdictions, from Australia to Thailand, to aid in planning and formulating effective human resource and business protection strategies.

READ THE ARTICLE HERE