Violating an employment contract is not a criminal issue, it is a civil issue at best.

The most they can realistically do to you for violating that section is just firing you. I don’t see them trying to collect the “damages” in the civil court.

That makes it a breach of contract, not illegal.

Making a contract with intent to defraud someone is not legal (i.e. pretending that you are going to work full time while knowing you are not going to do it).

Is pretending you are going to do good work but you know you are incompetent also fraud? How about the company pretending it is a good place to work but they know it actually sucks to work there? Just throwing the word fraud around at things you don't like is meaningless.

Both of these things would technically be fraud I would think. Definitely hard to prosecute due to subjectivity though.