Singapore’s Ministry of Manpower (MOM) has confirmed that tripartite guidelines on restraint of trade clauses in employment contracts will be released in the second half of 2026. For employers who routinely include non-compete, non-solicitation, or gardening leave provisions in contracts, this is a significant regulatory moment. The tripartite guidelines on restraint of trade in Singapore will not replace the courts’ role in determining enforceability — but they will establish published norms that employees, unions, and regulators will use as benchmarks when disputes arise. Employers who act before the guidelines land are in the strongest position to comply without costly contract overhauls.
This article sets out the background, what the guidelines are expected to address, and the practical steps Singapore employers should take immediately.
What Are Restraint of Trade Clauses?
A restraint of trade clause is a contractual provision that limits what an employee may do after their employment ends. The three most common types in Singapore employment contracts are:
Non-Compete Clauses
These prohibit the former employee from working for a competitor or starting a competing business for a specified period and within a specified geographic area after leaving. They are the most scrutinised type and the most frequently struck down by Singapore courts.
Non-Solicitation Clauses
These prevent the former employee from approaching the employer’s clients, customers, or other employees for a defined period. Courts generally view these more favourably than non-compete clauses, as they target a specific relationship rather than general employment freedom.
Gardening Leave Clauses
These require the employee to serve their notice period away from the office — and often away from industry contact — effectively keeping them inactive during the transition period to protect the employer’s business relationships. These are considered less restrictive than non-competes and are more consistently enforceable.
Understanding what your contracts actually contain is the first step. A review of your employment contract clauses and their Singapore implications is essential before the tripartite guidelines set the compliance bar.
The Current Legal Position in Singapore
Under Singapore common law, restraint of trade clauses are presumptively void and unenforceable — unless the employer can demonstrate two things. First, there must be a legitimate proprietary interest worth protecting (typically trade secrets, confidential client lists, or specialised know-how). Second, the restraint must be reasonable: reasonable in scope, in geographic coverage, and in duration.
The Ministry of Manpower has reiterated publicly that enforceability is assessed by the Courts on the facts of each individual case. MOM does not approve or register these clauses; it is the parties — or ultimately the courts — who determine whether a given clause is valid.
In practice, Singapore courts have struck down non-compete clauses that were overly broad in scope (for example, prohibiting all work in an industry rather than work for direct competitors), excessive in duration (anything over 12 months is increasingly scrutinised), or applied to employees in roles unlikely to have access to genuinely protectable information. Courts look at the clause as written at the time of contracting, not as an employer might wish to apply it later.
Tripartite Guidelines Restraint of Trade: What to Expect
The tripartite guidelines process was initiated after MOM received feedback that restraint of trade clauses were being included routinely in employment contracts even for roles where there is little or no legitimate proprietary interest — particularly for lower-wage workers. Based on official MOM statements and the structure of comparable tripartite guidelines in Singapore, the forthcoming guidelines are expected to address:
Duration Norms
The guidelines are likely to establish reasonable duration benchmarks, with a clear signal that 12 months or less is the norm for most roles. Extended post-employment restrictions beyond 24 months are expected to be flagged as presumptively excessive, absent exceptional circumstances.
Geographic Scope
For most Singapore-based roles, a restriction limited to Singapore is defensible. Pan-Asian or worldwide restrictions for roles without genuine international scope are expected to be noted as overreach. The guidelines are likely to require scope to match the territory where the employee actually operated and had relationships.
Salary-Level Thresholds
MOM has signalled that low-wage workers should not routinely face non-compete obligations. The guidelines are widely expected to set a salary floor below which non-compete clauses are considered inappropriate — analogous to approaches taken in comparable jurisdictions. Employers applying standard-form restraints to all staff regardless of pay level should prepare for this threshold.
Documentation of Legitimate Business Interest
Rather than allowing employers to insert boilerplate restraint clauses, the guidelines are expected to require that employers be able to identify and document the specific proprietary interest a given clause protects. If an employer cannot articulate why a particular employee requires a non-compete, the clause is unlikely to survive scrutiny.
The Link to the Workplace Fairness Act
The Workplace Fairness Act (WFA), which received Parliamentary assent in 2025 and is being phased in, contains important retaliation protections for employees. Employers cannot take adverse action against an employee for raising a concern about discriminatory or unfair employment practices.
Restraint of trade clauses that are used — or perceived to be used — to deter employees from raising WFA complaints may be treated as retaliatory conduct. For example, threatening enforcement of a non-compete clause shortly after an employee files a discrimination complaint creates a serious legal risk. HR teams should ensure that any enforcement decisions regarding restraint of trade clauses are documented on commercial grounds, and are not linked in timing or substance to an employee’s exercise of rights under the WFA.
Staying on top of Singapore’s evolving HR compliance landscape is easier with a structured calendar. The Singapore HR MOM compliance calendar for 2026 provides a month-by-month view of key regulatory deadlines every employer should track.
Consequences of Non-Compliance After the Guidelines Are Published
Tripartite guidelines in Singapore do not carry the force of statute, but non-compliance has practical consequences. The Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) can investigate complaints, issue advisories, and — in persistent cases — refer employers to MOM for action. Adverse MOM action can affect work pass quotas and privileges, which is a material risk for employers who rely on foreign talent.
Singapore courts will also consider published tripartite guidelines when determining whether a contested clause is reasonable. Once the guidelines are in place, a clause that clearly violates the published norms will be significantly harder to enforce.
Employer Action Checklist: Steps to Take Before H2 2026
Before the tripartite guidelines on restraint of trade are published, Singapore employers should complete the following steps:
1. Audit all employment contracts containing restraint of trade clauses. Identify which roles carry non-compete, non-solicitation, or gardening leave obligations and when those contracts were last updated.
2. Segment by salary level. Flag all contracts where a non-compete clause applies to employees earning below SGD 4,000 per month. These are the contracts most likely to be impacted by any salary-floor provision in the guidelines.
3. Assess legitimate interest for each role category. For each job type carrying a restraint clause, document the specific proprietary interest being protected — trade secrets, client access, specialised knowledge. If you cannot articulate a legitimate interest, the clause should be removed or substantially narrowed.
4. Review duration and geographic scope. Ensure non-compete durations are 12 months or less for most roles, and that geographic scope matches the territory where the employee actually operated and maintained client or business relationships.
5. Engage your legal counsel. Once the guidelines are published, you will want a legal opinion on whether your revised contracts are compliant. Starting the review now means fewer emergency changes when the guidelines land.
6. Train HR and line managers. Decisions to enforce a non-compete clause must be made on documented commercial grounds — never as a response to an employee’s exercise of statutory rights. Brief HR and line management on the boundary between legitimate enforcement and conduct that could be characterised as retaliation.
For employers who are hiring foreign professionals under an Employment Pass, it is worth noting that many candidates originating from the US, UK, Australia, and parts of Europe are increasingly aware of — and resistant to — broad non-compete clauses. Proportionate restraints are also better hiring optics in a competitive talent market.
Conclusion
The tripartite guidelines on restraint of trade clauses represent a meaningful shift in how Singapore will regulate post-employment restrictions. The core message from MOM is consistent with the direction of travel internationally: restraint clauses must be proportionate, justified, and should not be imposed on workers who have no access to genuinely protectable business information.
Employers who conduct a thorough contract review now — before the guidelines are published — will face a far smoother compliance transition than those who wait. Acting in the second quarter of 2026 gives you time to consult legal counsel, update templates, and retrain your HR team before the regulatory moment arrives.
Singapore Employment Agency, the consumer brand of Little Big Employment Agency Pte Ltd (EA Licence 19C9790), assists employers across Singapore with Employment Pass applications, work pass compliance, and HR process reviews. If your organisation is expanding its workforce or setting up operations in Singapore, our licensed team can advise on employment contract requirements alongside the work pass process.
For company formation, registered office, corporate secretarial services, and end-to-end Singapore business setup, Raffles Corporate Services is the group’s corporate advisory arm.
— The Editorial Team, Little Big Employment Agency