A recent decision by the Constitutional Court on the non-competition clause between employers and employees has given rise to a deep debate.
Non-compete clause: what is it?
The non-compete clause is a contractual clause that may be introduced by mutual agreement between the employer and the employer. It limits the ability of the employer to carry out similar professional activities in competition with the company, following a cessation of employment by taking advantage of the know-how acquired in the meantime. The worker who violates this pact can be accused of unfair competition, while the company that hires them of parasitic competition.
Non-compete clause: the Court’s decision
The Constitutional Court has emphasized that the non-compete clause serves mainly to protect the employer. Instead, it is in the interest of the worker not to be bound by a non-compete clause which significantly limits his ability to find paid employment, limits it in the application of its knowledge and skills and therefore reduces its price on the labor market, and puts at risk the obligation to pay a contractual penalty. The Constitutional Court stated that the absolute invalidity of a withdrawal from a non-compete agreement can only be assessed on the basis of detailed evidence in each specific case.
When can the employer withdraw from the pact?
The Constitutional Court has allowed the employer to withdraw from the non-competition pact even without providing a reason just before the termination of the employee’s employment relationship if the employer sufficiently explains why he could not have done so before. However, situations in which the withdrawal from the non-competition agreement took place on the last day of the employment relationship without the employer having a justified reason, or where the worker has found employment in another sector with the express aim of complying with the competition clause, and the employer became aware of this and withdrew from the non-compete clause in order to evade the obligation to pay the worker for complying with it, will continue to be indefensible.
Source: http://Eversheds
Source of image: Pixabay.com
