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DominicConnor
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Joined: July 14th, 2002, 3:00 am

Non Compete Clauses Don't Work

August 8th, 2008, 6:34 pm

Out bestest friends Arthur Anderson apparently are not completely dead.They still sue employees under non-compete agreements, but apparently under Californian law, non-competes signed there are invalid.You can compete in California
 
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sunmaker
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Joined: February 11th, 2006, 6:33 pm

Non Compete Clauses Don't Work

August 8th, 2008, 10:29 pm

Last edited by sunmaker on August 8th, 2008, 10:00 pm, edited 1 time in total.
 
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twofish
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Non Compete Clauses Don't Work

August 9th, 2008, 3:50 pm

There are quite a few legal scholars that have argued that Slilcon Valley exists because non-competes are unenforcable under California law.http://moritzlaw.osu.edu/eblj/issues/vo ... ves.pdfThe case itself was interesting and much complex than the issue of non-competes.http://www.courtinfo.ca.gov/opinions/do ... 190.PDFOne interesting part of the case is it involves the principle that in issues involving the interpretation of state law, state courts overrule federal courts.
Last edited by twofish on August 8th, 2008, 10:00 pm, edited 1 time in total.
 
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PaperCut
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Joined: May 14th, 2004, 6:45 pm

Non Compete Clauses Don't Work

August 14th, 2008, 1:47 am

QuoteOriginally posted by: DominicConnorOut bestest friends Arthur Anderson apparently are not completely dead.They still sue employees under non-compete agreements, but apparently under Californian law, non-competes signed there are invalid.You can compete in CaliforniaHere's a nightmare:Falkenstein
 
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DominicConnor
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Joined: July 14th, 2002, 3:00 am

Non Compete Clauses Don't Work

August 14th, 2008, 7:17 am

2Fish may well have a point. There does seem to be a optimum to be found between absolute sanctity of contract and monopolising a segment of the workforce.Although I am not a lawyer of any kind, let alone a Singaporean one, my understanding is that it is more difficult/expensive to move between Sg firms than anywhere else at all, even the People's Republic of China, which is quite a trick.The sticky labour market in Singapore is why I believe it is not likely to be the "3rd Centre" after London and NY, hosting the Far Eastern financial markets.At one level it is easy to fix, abolish a dumb set of laws together with custom and practice. But too many employers see staff as things they own, and it will be tough politically.Hong Kong has roughly the British model which we know works and has a working legal system in general.
 
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thomssi
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Joined: August 25th, 2005, 2:45 am

Non Compete Clauses Don't Work

August 25th, 2008, 3:17 am

QuoteOriginally posted by: DominicConnor2Fish may well have a point. There does seem to be a optimum to be found between absolute sanctity of contract and monopolising a segment of the workforce.Although I am not a lawyer of any kind, let alone a Singaporean one, my understanding is that it is more difficult/expensive to move between Sg firms than anywhere else at all, even the People's Republic of China, which is quite a trick.The sticky labour market in Singapore is why I believe it is not likely to be the "3rd Centre" after London and NY, hosting the Far Eastern financial markets.At one level it is easy to fix, abolish a dumb set of laws together with custom and practice. But too many employers see staff as things they own, and it will be tough politically.Hong Kong has roughly the British model which we know works and has a working legal system in general.Where do you get this idea about Singapore?The employment act (google it) has the built in ability to buy out your contract, can move whenever you like. Most law is based on UK (LKY studied there added to which the carry over from the stuff the Brits put in). Not sure on enforcibility of non-compete clauses but then I expect same as UK and in any case they are uncommon in financial services.One hinderence if you are on an EP is the new company has to sponsor a new one and pretty quickly. You also have to clear your tax arrears. Still, know several people who have moved. Get a PR or personal EP (easy) and issues vanish.
 
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DominicConnor
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Joined: July 14th, 2002, 3:00 am

Non Compete Clauses Don't Work

September 1st, 2008, 1:12 pm

Where do you get this idea about Singapore?Singaporeans.I also did a stint as part of the Phillip group.You mention "buying out your contract", which is exactly the issue that makes me pessimistic about Sg's hopes of being the 3rd centre.Not saying Sg will fall over and die, perhaps it could have the same relationship to HK (or whichever city wins) that Paris or Dublin has to London.If you're going to make your living out of high brainpower based industries then you need the most liquid labour market you can get.The PRC will find it easier to get a liquid labour market for high skilled labour since unlike Sg, it won't have to listen to vested interests who want to hoard labour in a Soviet fashion. Yes, I see the irony in all that.Sg has a legal system, whereas the PRC does not, which is a huge asset. LKY left Britain too soon...Although London may now be the largest financial centre, from the perspective of that many years ago it was a very unlikely event.Britain had a lower GDP per head than Italy, and it's economy was far behind what we then called West Germany, a smaller entity than what we call Germany now.France was ahead on pretty much every measure and the running was between Frankfurt and Paris to be Europe's finance centre.The British changed huge piles of law whole occupations were abolished, as were privileges to types of lawyer, banker, and coal miner.Britain now has the least fucked up labour market in Europe, which is not quite the same as non-fucked up, but less is currently enough.That means sucking in foreigners against local protests, (London was a major city in the French Presidential elections), and taking out vested interests.If like Sg your government cannot tell the difference between commerce and administration it's much tougher to do this.