Understanding the Impacts of the Non-Compete Clause in Employment Contracts From the Perspective of the Sustainable Development Goals

Abstract

With the effect of the Covid pandemic, people lost their jobs, and it magnified the rate of workforce turnover in the labour market. It has caused difficulty for employees to find new jobs because the non-compete clause has been incorporated into the employment agreement. The purpose of inserting the clause is to protect the employer's business interest, however, it also gives some difficulties to employees to proceed with new employment. The validity of the non-compete clause in the employment agreement seems reasonable for the employer, however it seems to be a restrictive measure for the employees. The chapter intends to review the impact of non-compete clauses in employment contracts in Malaysia. Besides, the chapter also intends to review the cases related to a non-compete clause in Malaysia and provide legal protections to protect the best interest of both employers and employees. Lastly, this study focuses on promoting decent work opportunities as well as productive employment for all.