Question
ABC Company sells milk-based drinks in Singapore with a secret formula, which is known only to a few employees in the company (namely, the scientific
ABC Company sells milk-based drinks in Singapore with a secret formula, which is known only to a few employees in the company (namely, the scientific researchers and testers). There are rival products available in other markets (for example, XYZ Milk Drinks in Malaysia) but there is no direct competition in Singapore. Nevertheless, the management of ABC Company is paranoid about secrecy, and also wants to protect itself against any potential competition. So, the management has decided to have all employees sign a contract with the following clause:
"After your services with the company has ended, you (the employee) shall not work for any other food and beverage company, in Singapore or elsewhere, for 5 years, or use any secret or confidential information that was obtained while you are in our employment."
Analyse the clause with reference to the legal rules relating to illegality, to determine whether, and to what extent, the company is able to enforce this clause against the employees.
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