Rule on Post-Employment Ban | 06 March 2024

A restriction in the contract which does not preclude the employee from engaging in competitive activity, but simply provides for the loss of rights or privileges if he does so is not in restraint of trade.” (Rolando Rivera v. Solidbank Corporation, G.R. 163269, April 19, 2006)

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Alburo Law
March 06, 2024

Rule on Post-Employment Ban

A restriction in the contract which does not preclude the employee from engaging in competitive activity, but simply provides for the loss of rights or privileges if he does so is not in restraint of trade.” (Rolando Rivera v. Solidbank Corporation, G.R. 163269, April 19, 2006)

Post-employment ban or restrictions refer to those limitations imposed by an employer on former employees after termination of their employment in relation to their work or business moving forward, and the limitations on divulging sensitive or confidential information regarding the employer to any third party.

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