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Non Compete Release Letter Template for Singapore

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Key Requirements PROMPT example:

Non Compete Release Letter

"I need a Non Compete Release Letter to release our former CTO from their non-compete obligations effective March 1, 2025, but we want to maintain confidentiality obligations regarding our proprietary software development methods."

What is a Non Compete Release Letter?

A Non Compete Release Letter is utilized when an organization wishes to formally release an individual from existing non-compete restrictions. This document is particularly relevant in Singapore's dynamic business environment where employee mobility and market competition are significant factors. The letter should clearly identify the original non-compete agreement, specify the extent of the release, and address any surviving obligations. Under Singapore law, such releases must be properly documented to ensure legal certainty and protect both parties' interests. The document typically includes reference to the original agreement, clear release language, effective date, and any conditions or limitations.

What sections should be included in a Non Compete Release Letter?

1. Recipient Details: Full name and address of the person being released from non-compete obligations

2. Reference to Original Agreement: Details of the original non-compete agreement including date and parties

3. Release Statement: Clear and unambiguous statement releasing the individual from specific non-compete obligations

4. Effective Date: When the release becomes effective

5. Surviving Obligations: Any obligations that continue despite the release (e.g., confidentiality)

What sections are optional to include in a Non Compete Release Letter?

1. Consideration Statement: Details of any consideration provided for the release, if applicable

2. Partial Release Terms: If only releasing from specific aspects of non-compete, detailed description of what remains in force

3. Mutual Releases: If both parties are releasing each other from obligations

What schedules should be included in a Non Compete Release Letter?

1. Original Non-Compete Agreement: Copy of the original agreement being released

2. Board Resolution: If required, corporate authorization for the release

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















Clauses















Industries

Employment Act (Chapter 91): Primary legislation governing employment relationships in Singapore. While not directly regulating non-compete clauses, it provides the fundamental framework for employment relationships and must be considered in the context of employment termination.

Common Law Doctrine - Restraint of Trade: Singapore courts follow this doctrine which requires that non-compete clauses must be reasonable in geographic scope, duration, and scope of restricted activities. Key precedents include Tan Kok Yong v Robina Chartered Pte Ltd [2001] and Man Financial v Wong Bark Chuan David [2008].

Competition Act (Chapter 50B): Ensures that any restrictions in the non-compete release do not violate competition laws or create unfair market restrictions. Must be considered when drafting release terms.

Contract Law Requirements: The release must comply with basic principles of Singapore contract law, including the requirement for valid consideration for the release to be legally binding.

Clear Identification Requirement: Legal requirement to clearly identify and reference the original non-compete obligations that are being released.

Explicit Release Language: The release must contain explicit and unambiguous language clearly stating the extent and nature of the release from non-compete obligations.

Effective Date Definition: Legal requirement to clearly specify when the release takes effect and any conditions precedent to effectiveness.

Surviving Obligations: Need to specify any confidentiality or other obligations that survive the release of the non-compete provisions.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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