What is the maximum non-compete duration in Myanmar?
The typical maximum enforceable non-compete duration in Myanmar is 6 months post-employment under the Employment & Skills Development Law (ESDL) 2013 reasonableness test. Some courts uphold up to 12 months for senior roles with strong consideration. Beyond 12 months, non-compete clauses are rarely enforced. NDAs and non-solicit clauses can run longer.
What Myanmar law says
The Employment & Skills Development Law (ESDL) 2013 does not set a fixed statutory cap on non-compete duration; instead, courts and the Conciliation Body apply a reasonableness test. In practice, durations of 6 months are the comfortable maximum, and durations beyond 12 months are rarely enforced. The longer the duration, the stronger the consideration the employer must offer (e.g., garden-leave salary continuation) for the restraint to stick.
Duration by role and risk
| Role | Reasonable max | Notes |
|---|---|---|
| Junior / operational | None recommended | Non-compete rarely justified |
| Mid-level individual contributor | 3 months | Tied to specific projects |
| Manager with client access | 6 months | Pair with non-solicit |
| Senior leader / C-suite | 6 – 12 months | Pair with garden-leave salary |
| Trade-secret access / R&D | 12 months | Pair with NDA covering trade secrets indefinitely |
What weakens duration enforceability
- No consideration paid for the restraint.
- Same duration applied to all employees regardless of role.
- No defined competitive risk or trade-secret access.
- Worldwide geography combined with long duration.
- Restraint applied to involuntary leavers (made redundant) without compensation.
What if there's a dispute
- Township labour office first — common claim is over-long non-compete preventing the leaver from finding work.
- Conciliation Body — formal conciliation under the Settlement of Labour Disputes Law.
- Arbitration Council — final binding step. Statute of limitations: typically 6 months.
Employer takeaway
Cap non-compete duration at 6 months for most roles, 12 months for senior or trade-secret roles. Pair the restraint with consideration — typically garden-leave salary or a one-off post-exit payment. Use non-solicit and NDAs (which can run longer) to cover residual risk. Run final settlement within 7 days of last working day, deregister from SSB within 30 days, and keep the signed restrictive-covenant pack for at least 7 years.
Edge cases and unenforceable clauses
- Non-compete after redundancy — typically unenforceable without strong consideration.
- Non-compete with no consideration — weakens duration enforceability.
- Tiered "first 3 months full, next 3 months partial" — clear drafting can help.
- See non-compete enforceability.
Common duration mistakes
- Setting non-compete at 2 years for all employees.
- Skipping consideration for senior-role non-competes.
- Applying long durations to redundant employees.
- Using non-compete instead of NDA + non-solicit, which would cover the same risk more enforceably.
- Employment & Skills Development Law (ESDL) 2013 — restrictive covenants
- Notification 84/2015 (or current) — termination framework
- QHRM Myanmar Termination Compliance Guide
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