Post-employment non-competition agreement

Available immediately in electronic form, sent by e-mail

A non-competition agreement after termination of employment is an agreement concluded between the employer and employee, separate from the employment contract. The entities agree that an employee who has access to confidential information, the disclosure of which could expose the employer to damage, will not be able to conduct any activity competitive to the employer or perform work under an employment relationship or on another basis for the entity conducting such activity (non-competition). The non-competition agreement is concluded in writing, otherwise null and void. It specifies the amount of compensation due to the employee from the employer and the duration of the non-competition clause. The non-competition clause shall cease to apply before the expiry of the term for which the contract was concluded if the reasons for it no longer apply. In justified cases, such as prohibition or failure of the employer to pay compensation, the prohibition of competition ceases to apply before the expiry of the term for which the contract was concluded. The compensation may not be lower than 25% of the remuneration received by the employee before the termination of the employment relationship for the period corresponding to the duration of the non-competition clause. Labour court is the competent court to resolve any disputes.

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Description

A non-competition agreement after termination of employment is usually signed if the employee had access to confidential information, the disclosure of which could expose the employer to damage. The contract specifies the amount of compensation due to the employee and the duration of the prohibition.

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