We live in a strange employment world.
When the COVID-19 global pandemic hit us in 2020, we all expected the worst in the job market. The Singapore government (as well as government worldwide) were quick in introducing schemes like the Job Support Scheme and the Job Growth Incentive to help protect jobs during this uncertain period.
Yet, what we experienced thereafter in the job market thereafter was The Great Resignation. First coined by Anthony Klotz, an organisational psychologist and professor at Texas A&M University, to describe the wave of mass resignations due to the pandemic causing a shift in our mindsets about work, companies found themselves in a battle with one another to attract good talent to their organisation.
Read Also: Are Singapore Employees Part Of The Great Resignation?
A Tough Labour Market?
2023 was supposed to be the start of a new dawn as many looked forward to a post-pandemic world. Ironically, just as the borders are reopening and one would expect labour markets to perform, what we are seeing globally in 2023 is an increase in the unemployment rate, both in Singapore and many other countries around the world.
In September 2023, Singapore’s Ministry of Manpower (MOM) released the 2Q2023 Labour Market Report, revealing that while total employment increased by 24,300 in the quarter, there are signs of weakening labour demand due to a sluggish external environment and economic growth.
Job vacancies in Singapore have also declined for the fifth consecutive quarter, falling from 126,000 in March 2022 to 87,900 in June 2023. This has caused the job vacancy-to-unemployed person ratio to decrease from 2.28 to 1.94. Similar hiring declines are seen globally, with Ireland, Australia and Canada also experiencing similar trends in the decline in hiring.
In the US, job openings hit a nearly two-and-a-half-year low at 8.8 million in July, while the Job Quits rate declined to 2.3, approaching pre-pandemic levels. The “September Surge,” a phenomenon where companies typically increase hiring in the later months of the year, may not hold true in 2023 due to various macroeconomic challenges. High-interest rates, inflation, the Ukraine conflict, and geopolitical tensions are contributing to the complex business environment.
Despite these challenges, Singaporean employers have been more flexible in allowing remote work compared to many other developed countries. However, with a reduced GDP forecast for Singapore, the outlook for both employers and employees appears less optimistic for the rest of the year.
Could It Be Illegal To Jump From Ship To Another?
Whether voluntary or involuntary, it’s normal to see workers jumping from one company to company within the same sector. Many of us may also have non-compete clauses in employment contracts. Non-compete clauses prohibit employees from engaging in activities that compete with their former employer after leaving the company.
However, these clauses are not automatically enforceable and they must meet specific criteria.
Firstly, a non-compete clause must protect a legitimate proprietary interest, such as trade secrets or client connections, to be enforceable. Skills or general experience gained during employment do not qualify.
Secondly, the clause must be reasonable to the parties involved and the public. It should consider factors like the scope of employees being restrained, the scope of activities being restricted, the duration of the restraint, and the geographical scope.
Employers can strengthen a non-compete clause’s enforceability by negotiating specific terms or by providing compensation in exchange for signing. Once signed, breaching the clause can lead to legal consequences. When an employee leaves, it’s advisable to remind them of the non-compete terms and explore non-litigious solutions. If a breach occurs, employers can seek injunctions or compensation through legal means.
Ultimately, non-compete clauses aim to protect companies while not overly hindering employees’ career prospects, requiring careful negotiation and understanding by both parties to ensure a fair balance.
Read Also: Can You Really Enforce The Non-Compete Clause in Singapore?
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