Singapore: Responding to mass resignations

In a recent decision, the Singapore High Court (SGHC) declined to grant a "springboard injunction" to an employer who sought to prevent a number of its employees taking up employment with a competitor by relying on alleged breaches of fiduciary duties owed by the employees to act in its interests.

The employer was forced to seek this type of relief as there were no post-employment non-competition restraints in the employees' employment contracts. In the absence of local authority on whether springboard orders were available in circumstances other than misuse of confidential information, the SGHC considered the approaches in the UK, Hong Kong and Australia. The SGHC favoured the approach taken by Hong Kong and Australian courts and declined to make springboard orders given the absence of threatened or actual misuse of confidential information on the facts before it.

Impact for employers

The decision highlights the reluctance of Singapore courts to restrict employees' rights to move freely between employers, provided they have complied with the express terms of their employment contract. Accordingly, employers should ensure that, express restrictive covenants are included in employment contracts and such covenants are reasonable to protect their proprietary interests.

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