17
Mar
Rules on Restrictive Covenants in Employment Relationship
Employers may stipulate with employee in the contract that the latter shall not get employed with a competitor or put up similar competing business. In this instance, the Supreme Court, in the case of Solid Bank vs. Rivera (G.R. No. 163269, April 19, 2006) the employer is burdened to establish that a restrictive covenant barring an employee from accepting a competitive employment after retirement or resignation is not an unreasonable or oppressive, or in undue or unreasonable restraint of trade. [...]