A clause of the employment contract which restricts the activity of the employee for a period of time, which may not exceed 3 years from the termination of the contract, is lawful if the following conditions are met: (a) such clause is included, in writing, in the employment contract, or in its addendum; (b) the activity performed may cause real damage to the employer and may be considered as unfair competition; (c) the employee is paid a salary during the period of restriction of work: the corresponding amount will be included in the contract or its addendum.
A clause which requires an employee who benefits from professional improvement or higher level education at the expense of the employer to remain at the service of the same employer for a certain period of time, provided that such period does not exceed 1 year, in case of training of professional improvement and up to 3 years in case of courses of high level education, is also lawful if established in writing. In this case, the employee may release themselves from remaining at the employer’s service by repaying to the employer the amount of the expenses incurred by the employer, in proportion to the remaining time until the term of the agreed period. The employer that hires the employee within the period of restriction of activity in the company is jointly liable for the damages caused by the employee or for the amount not returned by the employee.
Last modified 2 Jul 2024
Non-compete, customers and services providers, non-solicitation and employee non-solicitation clauses are often
used, especially when the employer and employee negotiate the terms and conditions of the termination of the employment.
Restrictive covenants may be enforced post-employment, provided the employee receives compensation for the restrictions. Therefore, consideration is required for valid restrictive covenants. The amount must be fair and in accordance with the salary of the employee, their position in the company, the agreements that the company intends to impose and the extent (ie, period and territory) of the restrictive covenant.
The law does not specifically regulate restrictive covenants. However, most restrictive periods range between 2 and 5 years. Under certain circumstances, the court has enforced a 10-year post-termination restraint period, based on the business and the amount of consideration paid to the employee.
Where an employee is in breach of an agreement, the employer may file a claim against the employee in court requesting compensation for damages. The complaint may include injunctive relief to stop the violation immediately. Alternatively, courts may declare the covenant null and void if it has been drafted too widely.
Last modified 10 May 2023
Those that protect the employer's legitimate business interests may be enforced to the extent reasonably necessary to protect those interests in all circumstances.
Typically no longer than 12 months, with some exceptions.
Last modified 24 Mar 2023
Those that protect the employer's legitimate business interests may be enforced if reasonable. Garden leave is common for senior employees.
For special employees with a higher income permitted (in 2024, at least EUR 4,040 gross per month), but not longer than 12 months. If the non-competition clause is valid and enforceable (depending on if (i) the employee terminates the employment, if (ii) the employment relationship has been terminated by the employer for good reason with immediate effect or if (iii) the employee has terminated the employment with immediate effect without good reason), there is no requirement for payment during the non-competition period. If it is not enforceable (eg, if the employer terminates the employment without good reason), the employer may pay the salary during the non-competition period in order to make the non-competition clause enforceable.
Permissible in narrow circumstances.
Last modified 13 Jun 2024
It is permissible to have restrictive covenants contained in the contract of employment to the extent necessary to protect the legitimate interests of the employer, provided the nature of the employee's work allowed them to know the company's clients and/or know the secrets of the business.
Covenants must be restricted in relation to their duration (which must not exceed 1 year), geographical scope and the nature of the business to be protected.
Parties are permitted to include a liquidated damages clause in the contract of employment, as it is difficult to obtain an injunction in Bahrain, but contractual provisions imposing a penalty (rather than a genuine estimate of the loss incurred) are likely to be unenforceable.
Typically no longer than 6 to 12 months.
Typically no longer than 6 to 12 months.
Last modified 13 Jun 2024
Those that protect the employer's legitimate business interests may be enforced if reasonable.
Strict conditions, including conditions in relation to salary level, scope of application of the clause and, in some cases, duration (in principle, no longer than 12 months, except for so-called “international non-compete clauses” with a geographical scope beyond the Belgian territory). A-compete indemnity will be due equal to 1/2 of the remuneration due for the period of non-compete obligation if not explicitly waived in time by the employer, except for a non-compete in an employment contract for sales representatives.
Permissible, but only enforceable if reasonable.
Permissible, but only enforceable if reasonable.
Last modified 13 Jun 2024
Brazilian law does not address post-termination restraints. Therefore, enforcement of post-termination restraints may be challenging.
Periods of up to 24 months have been accepted, but enforceability is more likely for shorter periods (ie, 6-12 months). Case law has upheld non-competes that were limited with regards to scope, territory, timeframe and fair and reasonable payment.
Generally permissible, but case law is scarce in this regard.
Last modified 13 Jun 2024
These are difficult to enforce. Restrictions must go no further than necessary to protect the employer's legitimate business interests. Garden leave is becoming more common. In Quebec, employers cannot rely on restrictive covenants when an employee has been terminated without cause.
Will generally not be enforceable for mere employees and not where a non-solicitation provision would have been sufficient. Must be reasonable in scope geographically and temporally, and in some jurisdictions, must also specify the type of restricted employment and the restricted job functions. Must be clear and unambiguous. A requirement not to interfere with business relationships might also be enforced if it is reasonable, clear and unambiguous.
In Ontario, employers are prohibited from entering into any agreement with an employee containing a non-competition clause, with limited exceptions for senior-level executives and in the context of a sale of a business.
More likely to be enforced than a non-competition agreement, non-solicitation agreements must still be reasonable in scope geographically and temporally. Must be clear and unambiguous.
Likely to be enforced if reasonable, clear and unambiguous.
Last modified 24 Mar 2023
It is not against Chilean law to include post-termination restraints in an employment contract. However, because the Chilean Constitution explicitly protects an employee's right to work, courts may be unwilling to enforce such restraints.
Technically not prohibited, but may be difficult to enforce due to the constitutional protections identified above.
To date, the only post-termination non-competes accepted by the courts are those that provide compensation to the employee to compensate for the prohibition against competing. There are no clear parameters regarding the amount of the bonus and the maximum term of the non-compete – however, a maximum term of 2 years is customary.
Technically not prohibited, but may be difficult to enforce due to the constitutional protections identified above. A customer non-solicit may need to rise to the level of unfair competition in order for a court to enforce the clause.
Technically not prohibited, but may be difficult to enforce due to the constitutional protections identified above.
Last modified 13 Jun 2024
Those that protect the employer's legitimate business interests may be enforced if reasonable.
No more than 2 years. Compensation is required per local rules.
Permissible, but relatively difficult to enforce.
Permissible, but relatively difficult to enforce.
Last modified 14 Jun 2024
Post-termination non-compete clauses or agreements are not enforceable. However, such provisions are typically included in employment agreements because they can have a deterrent effect or create a sense of moral obligation on the part of an employee.
Post-termination customer non-solicits clauses or agreements are not enforceable. However, such provisions are typically included in employment agreements because they may have a deterrent effect or create a sense of moral obligation on the part of an employee.
Post-termination employee non-solicits clauses or agreements are not enforceable. However, such provisions are typically included in employment agreements because they may have a deterrent effect or create a sense of moral obligation on the part of an employee.
Last modified 13 Jun 2024
Only non-compete clauses are regulated by Czech law. Enforceability of other restrictive covenants is uncertain but should be permissible if reasonable, proportionate and tailored to the situation of the particular employee. Garden leave is not expressly regulated but increasingly common.
Permissible subject to compliance with statutory conditions (ie, maximum duration of 1 year, obligatory compensation of a minimum of 1/2 of average earnings per month, justifiability given the position of the employee and must be in written form).
Not regulated. Enforceability is uncertain but should be permissible if reasonable, proportionate and tailored to the situation of the particular employee.
Not regulated. Enforceability is uncertain but should be permissible if reasonable, proportionate and tailored to the situation of the particular employee.
Last modified 14 Jun 2024
Under the Danish Act on Restrictive Covenants that entered into force on January 1, 2016, an employee may be subject to a non-competition clause only if they hold a special position of trust, and the clause must indicate the specific circumstances as to why such a clause is necessary.
The compensation is either 40 percent or 60 percent of the monthly salary at the time of termination of the employment, and the first 2 months are considered minimum compensation. The compensation – save for the minimum compensation – may be reduced to 16 percent or 24 percent if the employee gets another suitable job.
For agreements entered into prior to January 1, 2016, a salaried employee may only be subject to a non-competition clause if they hold a trusted position (eg, if they have access to certain, otherwise restricted, information).
After January 1, 2016, an employee may only be subject to a non-solicitation clause regarding customers and business connections with whom the employee has had business relations over the last 12 months immediately prior to termination of the employment. The compensation regime which applies for non-competes also applies to customer non-solicits.
Since January 1, 2016, new rules have reduced employers' ability to use non-poaching and non-solicitation of employees' clauses and it is no longer legal to enter into these clauses except in connection with a business transfer. Pre-existing clauses were only valid until January 1, 2021.
Last modified 14 Jun 2024
According to the Employment Contracts Act, a post-termination non-competition obligation is possible for a particularly weighty reason related to the operations of the employer or to the employment relationship. The obligation may limit the employee's right to conclude an employment contract with a competing employer, as well as the employee's right to engage in competing operations on their own account for a maximum of 1 year. The restriction concerning length of the obligation is not applied to employees who, in view of their duties and status, are deemed to be engaged in the direction of the company, corporate body or an independent part thereof.
Employers have an obligation to pay compensation to employees for the period of the non-competition restriction after the employment. The compensation shall equal to 40 percent of the employee’s regular salary if the restriction period is up to 6 months and 60 percent of the employee’s regular salary (for the full period) if the restriction period is longer than 6 months. The compensation will be payable during the non-competition restriction period on the employer’s regular pay days. The payment schedule can be mutually agreed otherwise after termination of the employment. The employer will be allowed to terminate the non-competition agreement during the employment relationship without specific grounds – but not after the employee has resigned. The applicable notice period will be 1/3 of the agreed non-competition restriction period, or a minimum of 2 months. A shorter notice period can be mutually agreed only after the employee has resigned.
Non-solicitation of customers or employees is not regulated by the law. However, such covenants are possible and common. According to case law, such covenants may in some rare cases be comparable to non-competition obligations and, therefore, they may be subject to the same requirements.
Post-termination confidentiality clauses are not regulated in the law, but such covenants are common.
Last modified 14 Jun 2024
Restrictive covenants are allowed if justified by the company's business and employee's role.
Allowed under 5 conditions. It must:
No legal requirement for a financial compensation, although their validity is currently challenged by the courts, which often consider that they in fact constitute a non-compete restriction and as such should be duly compensated.
Last modified 14 Jun 2024
Must be in writing. Those that protect the employer's legitimate business interests may be enforced if reasonable. Garden leave is common for senior employees.
Typically no longer than 6 to 12 months, with a statutory maximum of 2 years. Compensation of 50 percent of the employee's wages is required during the non-compete period.
Permissible in narrow circumstances.
Permissible only if related to illegal poaching; an agreement not to hire employees from a certain business is not enforceable.
Last modified 14 Jun 2024
Those restraints that protect the employer's legitimate business interests may be enforced if reasonable. Garden leave is common for senior employees.
Typically no longer than 3 to 6 months.
Permissible in limited circumstances. Typically no longer than 6 to 12 months.
Permissible in limited circumstances. Typically no longer than 6 to 12 months.
Last modified 14 Jun 2024
Post-termination restraints are common in Hungary for employees in senior positions in order to protect the employer's economic interests for a period post-termination. Such restraints should always be tailored to individual employees.
Permissible for up to 2 years, if specifically included in the parties' agreement, if reasonable in geographical reach and scope, and if the employer pays a sufficient amount of compensation in exchange. For non-compete restraints entered into after July 1, 2012, such compensation must be at least 1/3 of the employee's salary.
Permissible, if included in the parties' agreement. Compensation is payable, but compensation for a non-compete also covers a customer covenant since separate compensation is not required for each different type of covenant.
Permissible, if included in the parties' agreement. Compensation is payable, but compensation for a non-compete also covers an employee covenant since separate compensation is not required for each different type of covenant.
Last modified 17 Jun 2024
The Indian Contract Act 1872 provides that every agreement by which anyone is restrained from exercising a lawful profession, trade or business of any kind is void. Therefore, non-competition clauses which operate during the course of employment are generally not regarded as restraint of trade. However, post-termination non-competition clauses are void and unenforceable.
Possibly enforceable. With post-termination non-dealing/non-solicit provisions, it may be argued that a restriction on activities with customers is a restraint of trade, if by complying the former employee is prejudicially affected from carrying out any trade. Whether such a clause is enforceable or not is, therefore, dependent on the facts of the case.
Non-solicitation provisions, even if they are upheld, generally only entitle the employer to damages, and it is highly uncommon for an Indian Court to grant an injunction preventing the customer from taking their business elsewhere. At best, a claim for damages may succeed against the employee for breach of their contractual agreement if the employer may show that the enforcement of the provision is essential to protect its confidential information and that the provision does not prejudice the former employee's ability to carry on a business or trade and therefore is not in restraint of trade.
Where it is suspected that a non-dealing/non-solicitation covenant has been breached, a claim for damages may be made against the employee for breach of their contractual agreement if the employer can show that the enforcement of the provision would not prejudice the employee’s ability to carry on their business/trade. However, even if a non-solicitation provision is upheld, this will generally only entitle the employer to damages. It is unlikely that an Indian Court would grant an injunction preventing other employees from leaving and joining a rival firm.
Last modified 17 Jun 2024
Enforceable by virtue of the principle of freedom of contract, adopted in the Indonesian Civil Code. However, in practice, they are very difficult – and sometimes impossible – to enforce.
Permissible in theory, but very difficult – and likely impossible – to enforce.
Permissible in theory, but may be difficult to enforce.
Permissible in theory, but may be difficult to enforce.
Last modified 13 Jun 2024
Considered in restraint of trade and void. However, those that protect the employer’s legitimate business interests may be enforced if reasonable. Restraints must be tailored for the specific business and the risks posed by the employee. Garden leave is common for senior employees.
Permissible in narrow, justifiable circumstances. Typical duration is no longer than 3 to 6 months with an absolute maximum of 12 months, depending on the circumstances. The geographical area must also be reasonable and not be extensive.
Permissible in specific circumstances. Typical duration is no longer than 3 to 6 months with an absolute maximum of 12 months, depending on the circumstances. The geographical area must also be reasonable and not be extensive.
Permissible. Length of restriction depends on the circumstances.
Last modified 17 Jun 2024
Although common, generally not enforceable under current Israeli case law.
Permissible. Typically not longer than 12 months.
Permissible. Typically not longer than 12 months.
Last modified 13 Jun 2024
Those that protect the employer's legitimate business interests may be enforced if reasonable.
Typically no longer than 6-12 months. To be valid and enforceable, such clauses must be agreed in writing and limited in scope, territory, time (ie, up to 3 years for non-executive and up to 5 years for executives) and must provide an adequate compensation – usually around 25 percent to 50 percent of the annual salary for a 1-year non-compete for the entire Italian territory. If such requirements are not met, the clause is null and void.
Last modified 18 Jun 2024
Generally permitted provided that they are reasonable in scope and duration. However, enforcement is not always easy. Japanese courts will closely examine issues such as the geographic scope, whether the restraint is necessary to protect a legitimate business interest and whether consideration was given to the employee.
Generally permitted subject to the limitations noted above, and non-competition covenants should satisfy at least the following conditions in order to be held enforceable:
Generally permitted, but enforceability will depend on the facts of the given case.
Generally permitted, but enforceability will depend on the facts of the given case as employees have a constitutional right to move to another company.
Last modified 18 Jun 2024
Generally not enforceable. However, those that protect the employer's legitimate business interests may be enforced if reasonable. Must be tailored for the specific business and the risks posed by the employee.
Permissible during employment, but only enforceable in narrow, justifiable circumstances post-termination. Usually contractually agreed upon between the employer and employee.
Permissible during employment, but only enforceable in narrow, justifiable circumstances post-termination. Usually contractually agreed upon between the employer and employee.
Permissible during employment, but only enforceable in narrow, justifiable circumstances post-termination. Usually contractually agreed upon between the employer and employee.
Last modified 20 Jun 2024
It is permissible to have restrictive covenants contained in the contract of employment, provided that the employee has become acquainted with the employer's clients or the secrets of the business and the covenants are reasonably drafted in relation to their duration, geographic scope and the nature of the business to be protected.
Parties are permitted to include a liquidated damages clause in the contract of employment as it is generally not possible to obtain an injunction in Kuwait; however, any such penalty should not be exorbitant.
Typically no longer than 12 to 24 months.
Typically no longer than 12 to 24 months.
Last modified 22 Jun 0024
A non-compete clause must be in writing, and it is deemed null and void when the employee signing the contract of employment is under 18 years of age and/or if the employee's annual remuneration when they leave the employer does not exceed EUR64,382.45 (index 944.43).
A non-compete clause is only valid if it anticipates an employee working as an independent contractor. The non-compete clause is only effective if the restriction:
Valid under Luxembourg law to the extent that they do not aim at limiting the employee's right to work as provided for in the Luxembourg constitution.
Valid under Luxembourg law to the extent that they do not aim at limiting the employee's right to work as provided for in the Luxembourg constitution.
Last modified 20 Jun 2024
Void and unenforceable pursuant to Section 28 of the Contracts Act 1950, as the former employee is "restrained from exercising a lawful profession, trade, or business."
Valid and enforceable only to the extent that there has been a breach of confidentiality, or misuse of confidential information or trade secrets.
Valid and enforceable only to the extent that there has been a breach of confidentiality, or misuse of confidential information or trade secrets.
Last modified 11 Apr 2023
Post-termination non-compete clauses or agreements are not enforceable. However, such provisions are typically included in employment agreements because they can have a deterrent effect and may create a sense of moral obligation on the part of an employee.
Post-termination customer non-solicit clauses or agreements are not enforceable. However, such provisions are typically included in employment agreements because they can have a deterrent effect and may create a sense of moral obligation on the part of an employee.
Post-termination employee non-solicit clauses or agreements are not enforceable. However, such provisions are typically included in employment agreements because they can have a deterrent effect and may create a sense of moral obligation on the part of an employee.
Last modified 20 Jun 2024
Permitted if limited in time and space. Usually 1 year maximum and 200 km maximum surrounding the place of work.
Permitted if limited in time. Usually 1 year maximum.
Permitted if limited in time. Usually 1 year maximum.
Last modified 20 Jun 2024
It is permissible to have restrictive covenants in the employment contract related to confidentiality, non-compete and non-solicitation after termination of the contract. However, there is no precedent where these kinds of clauses have been discussed in a court in Mozambique. In principle, these kinds of clauses would not be reviewed by a labor court, but rather by a civil court.
Permissible although not commonly enforced .
Permissible although not commonly enforced .
Permissible, but not common.
Last modified 14 Mar 2023
The labor legislation does not regulate non-compete clauses; employers may include such provisions in employment documentation. Sometimes their inclusion might raise issues at the time of registration of the contract with the TLO.
These provisions are often included in executive level employment contracts, but are not regulated by law and sometimes raise issues at the time of registration of employment contracts with the TLO.
Same as customer non-solicits.
Last modified 14 Mar 2023
Post-employment restraints to protect against competition are common in the Netherlands. Typically, such restraints remain in effect for up to 1 year after termination of employment. Non-competition clauses in fixed-term employment contracts are not allowed unless they are necessary to protect a legitimate business interest and the business interests are clearly described in the employment agreement. Published rulings have shown that this is a high threshold; therefore, it is common not to include a non-competition clause in fixed-term employment agreements.
Ancillary activities clauses are common and an employer can require an employee to inform the employer about any side-activities, but ancillary activities cannot be forbidden, unless the employer has an objective justification (eg, health and safety, the protection of confidentiality of business information, the integrity of public services, the avoidance of conflicts of interest).
Permissible under the same conditions as described above under non-competes (ie, the restrictions to include such non-solicit clause in a fixed term contract are the same).
Permissible and common (usually also for a term of 12 months after the employment has ended). There are no restrictions to include a non-poaching of employees clause in a fixed term contract.
Last modified 21 Jun 2024
Restraints in New Zealand are enforceable only if the restriction is no more than is reasonably necessary to protect the legitimate proprietary interests of the employer.
Permissible. Generally, non-competes are unenforceable for junior employees, but they may be enacted for up to 12 months for the most senior executive employees.
Permissible (subject to reasonableness).
Permissible (subject to reasonableness).
Last modified 21 Jun 2024
A post-termination non-compete is only enforceable if it is reasonable with reference to the interest of the parties concerned and of the public. A non-compete that put restraints on competition is illegal. In deciding the question of reasonableness, the courts consider the nature of the trade or occupation, the geographical area over which the restraint is imposed and the length of time for which it is to continue. The Federal Competition and Consumer Protection Act (FCCPA) sets forth a maximum period of 2 years.
A post-termination customer non-solicit is only enforceable if it is reasonable with reference to the interest of the parties concerned and of the public. In deciding the question of reasonableness, the courts consider the nature of the trade or occupation, geographical area over which the restraint is imposed and the length of time for which it is to continue. The FCCPA sets forth a maximum period of 2 years.
A post-termination employee non-solicit is only enforceable if it is reasonable with reference to the interest of the parties concerned and of the public. In deciding the question of reasonableness, the courts consider the nature of the trade or occupation, geographical area over which the restraint is imposed and the length of time for which it is to continue. The FCCPA sets forth a maximum period of 2 years.
Last modified 21 Jun 2024
Permissible, subject to specific criteria. No longer than 12 months. Must be in writing.
Permissible, subject to specific criteria. No longer than 12 months.
Permissible between employee and employer. Generally not permissible between employers, except for up to 6 months in relation to the sale of businesses.
Last modified 21 Jun 2024
It is permissible to have restrictive covenants contained in the contract of employment, provided that:
Parties are permitted to include a liquidated damages clause in the contract of employment as it is not possible to obtain an injunction in Oman.
Article 661 of Royal Decree No. 29/2013 issuing the Civil Transactions Law of Oman (CTL) states that:
Typically no longer than 2 years.
Typically no longer than 12 to 24 months.
Permissible. Typically no longer than 12 to 24 months.
Last modified 21 Jun 2024
Subject to comments below, it is common in Peru for companies to include or negotiate non-compete, non-solicitation and non-poaching clauses to prevent employees from competing with the employer after termination. Further, post-termination confidentiality obligations are included in termination agreements.
Post-termination non-compete obligations are not enforceable under Peruvian law. However, in practice, employers include them in termination agreements and/or employment agreements for a potential deterrent effect on employees. To ensure that the employee complies with the non-compete, some companies pay compensation after successful completion of the non-compete period.
Customer non-solicits are generally permissible. Peruvian law classifies as “sabotage” any actual or potential action which would, without cause, damage the business activity of another economic entity by means of interfering in the relationship with its employees, clients and other individuals, in order to induce the latter not to fulfill any obligation.
Employee non-solicits are generally permissible. As indicated in the previous paragraph, solicitation of employees amounts to "sabotage."
Last modified 21 Jun 2024
An employer, in the exercise of its management prerogative, may insist on an agreement with an employee for certain prohibitions to take effect after the termination of the employer-employee relationship.
The employer and employee are free to stipulate in an employment contract prohibiting the employee within a certain period from and after termination of their employment from
A non-solicitation clause may be a stipulation agreed upon by the employer and employee in an employment contract.
A non-recruitment or anti-piracy clause is a stipulation that may be agreed upon by the employer and employee in an employment contract.
Last modified 12 Apr 2023
Post-termination restraints – in particular, the confidentiality obligation – result from the statutory provisions or are imposed on the employee upon the separate agreement between the parties. Contractual post-termination covenants are relatively common in Poland in relation to employees who, during their employment, have access to particularly important information (eg, senior executives).
Parties to an employment relationship may enter into a non-compete agreement which will be effective during the term of employment as well as after the employment relationship has ceased. A non-compete agreement must be concluded in writing in order to be valid. A non-compete agreement effective after the termination of employment must specify the period of prohibition of competition, the scope of the non-compete restriction and the amount of compensation due to the employee. The compensation must not be lower than 25 percent of the remuneration received by the employee prior to the termination of the employment relationship for a period corresponding to the period of validity of the prohibition of competition. Polish law allows such compensation to be paid in monthly installments.
Statutory prohibition to induce the employer's clients to terminate, not to fulfill or improperly fulfill their contractual duties with an aim for the inducing person to gain benefits for themselves or for a 3rd party or to cause damage to the employer.
Statutory prohibition to induce the person performing work for the employer not to perform or improperly perform their contractual duties with the aim for the inducing person to gain benefits for themselves or for a 3rd-party or to cause damage to the employer.
Last modified 24 Jun 2024
Post-termination restraints aimed to protect the employer's legitimate business interests may be enforced, provided that the activity carried on by the employee may cause a potential loss to the employer.
The following types of obligations may be included in the initial employment contract, or may be part of a specific written agreement mandatorily containing:
In case these legal requirements are not fulfilled, the employee shall not be validly bound.
Permissible under the abovementioned rules.
Permissible under the abovementioned rules.
Permissible under the abovementioned rules.
Last modified 24 Jun 2024
It is permissible to have restrictive covenants contained in the contract of employment to the extent necessary to protect the legitimate interests of the employer, provided the nature of the employees’ work allowed them to know the company's clients and/or know the secrets of the business.
The covenants must be restricted in relation to duration (which must not exceed 1 year) and the nature of the business to be protected.
Typically no longer than 6 to 12 months.
Typically no longer than 6 to 12 months.
Last modified 24 Jun 2024
The parties may negotiate a post-termination non-compete clause prohibiting the employee from performing an activity competing with the one performed for their (previous) employer.
In order to be valid, a non-compete clause must specify certain minimum content as required by the Romanian Labor Code:
As a non-compete restraint represents an exception from the principle of freedom of work, failure to comply with the legal conditions for implementing such a clause may render the clause void.
Not expressly regulated by the law. May arguably be included within the scope of a non-compete clause.
Not expressly regulated by the law. May arguably be included within the scope of a non-compete clause.
Last modified 24 Jun 2024
Last modified 26 Jun 2024
Restraints that protect the employer's legitimate business interests may be enforced if reasonable.
Non-compete clauses are honored as long as they are in writing and specified in terms of place, duration (ie, no longer than 2 years) and type of work. If there is no written agreement, or an express non-compete clause is not included in an employment contract, the law will not impose any restrictions.
Permissible in narrow circumstances.
Last modified 26 Jun 2024
Covenants in restraint of trade, such as non-competes and non-solicits, are prima facie void in Singapore. They are only considered enforceable if they can be shown to be reasonable, such as by proving that they are required to protect the legitimate proprietary interests of the employer, and go no further than is reasonably necessary to protect those interests (especially in terms of duration, scope and geographic coverage). The courts have recognized 3 legitimate proprietary interests thus far: an employer's trade secrets and confidential information, the protection of trade connections and the maintenance of a stable trained workforce.
Last modified 13 Jun 2024
Where an employee may acquire information or knowledge that is not normally available and the use of which could cause substantial harm to the employer, the parties may agree in the employment contract that, for maximum 1 year after the termination of the employment, the employee shall not pursue any gainful activity that is competitive to the employer's activity.
The employer must provide appropriate financial compensation to the employee in the amount of at least 50 percent of the employee's average monthly earnings for each month of the commitment. The parties may agree in the employment contract on appropriate financial compensation which the employee shall pay in case of breach.
Customer non-solicits are not regulated by the Slovak Labor Code. Therefore, their enforceability may be questionable. Furthermore, if agreed, they usually serve only as a deterrent. Soliciting of customers cannot be sanctioned (eg, by a contractual penalty) as the Slovak Labor Code does not permit this.
Employee non-solicits are not regulated by the Slovak Labor Code. Therefore, their enforceability may be questionable. Furthermore, if agreed, they usually serve only as a deterrent. Soliciting of employees cannot be sanctioned (eg, by a contractual penalty) as the Slovak Labor Code does not permit this.
Last modified 28 Jun 2024
In principle, enforceable, with the party seeking to escape its effect having the onus of proving that the restraint ought not to be enforced, for being unreasonable and/or against public policy. The enforcing party must, however, be able to show that there is a proprietary interest worthy of protection, and the limitations to competition must not go beyond what is reasonably necessary to protect such legitimate business interest. Furthermore, the restraint must be reasonable as regards the nature, duration and the geographical area in which the restraint applies.
Proprietary interests include client relationships and trade secrets.
Permissible, in principle, if the employer has a proprietary interest worthy of protection and the restraint goes no further than necessary to protect that interest and the restraint is reasonable as regards the nature, duration and the geographical area in which it applies. A restraint period of 12 months is generally regarded as reasonable.
Last modified 1 Jul 2024
Restrictive covenants are generally enforceable in South Korea, provided they are reasonable and protect an employer's trade secrets.
Enforceable if reasonable and necessary to protect the employer's trade secrets.
Enforceable if reasonable and necessary to protect the employer's trade secrets.
Enforceable if reasonable and necessary to protect the employer's trade secrets.
Last modified 1 Jul 2024
Those aimed at protecting the employer's legitimate business interests may be enforced provided that:
Permissible under the abovementioned rules.
Once agreed upon, the employer cannot unilaterally waive, and therefore must pay the agreed-upon compensation. This restriction is usually agreed upon with high-profile employees only.
Permissible under the abovementioned rules. Extensive solicitation may also be subject to civil law claims under unfair competition rules.
Permissible under the abovementioned rules. Extensive solicitation may also be subject to civil law claims under unfair competition rules.
Last modified 1 Jul 2024
There are no specific statutory rules under Swedish law prohibiting post-contractual restraints other than that they must be reasonable in order to be enforceable. Instead, the rules are normally contained in collective bargaining agreements and individual employment agreements, which may allow post-contractual restraints under certain circumstances. However, such restraints may be deemed unreasonable and set aside or adjusted by a Swedish court.
The period of restriction depends on how long such a restriction can be objectively justified. A period of 9 months is common. In some cases, it may be possible to have a longer period depending, inter alia, on the expected lifetime of the employer's trade secrets to which the employee is privy. Nevertheless, the duration should generally not be longer than 18 months. In order for a non-competition clause to be valid, the employee must be entitled to compensation during the restricted period. The compensation does not need to exceed 60 percent of the employee's previous salary with the employer. Moreover, a non-competition clause may only be used where it is justified – for example, for employees with key or management positions with access to trade secrets.
Permissible, but may be adjusted by a court ruling if deemed unreasonably strict (eg, due to the length of the restrictive period).
Permissible. Non-solicitation clauses should not, however, extend beyond the legitimate interest to equalize the competitive advantage gained by the employee through the knowledge of the former employer's employees.
Pursuant to case law, the restricted period for a non-solicitation clause should normally not exceed 6 months.
Last modified 1 Jul 2024
Possible, provided the working relationship allows for employees to have knowledge of their employer's clientele or manufacturing or commercial secrets and where the use of such knowledge might cause the employer substantial harm. Non-competition clauses based on knowledge of the client are, in principle, unacceptable in circumstances where the relationship between employees and clients is essentially a personal one, based on employees' abilities and their particular relationships with clients. The restraint must be appropriately restricted with regard to place, time and scope so that it does not unfairly compromise the employee's future economic activity. Typically no more than 1 year, if based on the knowledge of the employer's clientele, and no more than 3 years, if based on knowledge of manufacturing and commercial secrets.
Permissible, with similar restrictions to non-competes.
Permissible, with similar restrictions to non-competes.
Last modified 13 Jun 2024
In order for an employer/employee non-competition agreement or provision to be valid and enforceable, the following requirements must be met:
Permissible for restraint periods of up to 24 months.
Permissible for restraint periods of up to 24 months.
Permissible for restraint periods of up to 24 months.
Last modified 10 Apr 2023
Those that protect the employer's legitimate business interests may be enforced to the extent that they are reasonable and fair to the parties.
A non-competition agreement is permissible to the extent that it is reasonable and fair to the parties. Generally, the restriction period of not more than 2 years within a restricted area, such as Thailand, may be acceptable.
A non-solicitation agreement is permissible to the extent that it is reasonable and fair to the parties. Generally, the restriction period of not more than 2 years within a restricted area, such as Thailand, may be acceptable.
A non-solicitation agreement is permissible to the extent that it is reasonable and fair to the parties. Generally, the restriction period of not more than 2 years within a restricted area, such as Thailand, may be acceptable.
Last modified 2 Jul 2024
The following restrictions are allowed:
Non-competition; non-dealing; non-solicitation of clients; non-solicitation of employees; non-employment of employees; protection of confidential information during / post-employment.
The law does not regulate the duration of restraints except for non-competition clauses in certain sectors (electricity and electronics) which is limited to 2 years and within a radius of 100 km from the head office etc. In practice, it is generally applied for a period of 2 years. However, it is important that these restrictions are reasonable and justified.
Last modified 10 Apr 2023
Written form is a condition for the validity of a non-compete agreement. Non-competes are valid only if the employee is employed in a position whereby they have the opportunity to acquire valuable knowledge or trade secrets and the use of such information may harm the employer.
Limitation is not regulated under the law and must be determined according to the particular case. However, based on Court of Appeal decisions, it is not possible to stipulate the non-compete territory as "all over the world" or "Turkey as a whole."
For example, "within the provinces in Turkey that the company operates" is a valid territory for a non-compete obligation.
Last modified 3 Jul 2024
Considered to be in restraint of trade and void. However, those restraints that protect the employer's legitimate business interests may be enforced if reasonable. They must be tailored for the specific business and the risks posed by the employee. Garden leave is common for senior employees.
Permissible in narrow, justifiable circumstances, if reasonable. Typically no longer than 6 months (maximum of 12 months), depending on the circumstances.
Generally permissible. Usually 6 to 12 months. Not yet tested in this jurisdiction.
Permissible. Usually 6 to 12 months.
Last modified 2 Jul 2024
Post-termination restrictive covenants are generally unenforceable.
A possibility to conclude non-compete and confidentiality agreements was introduced for Diia City residents in respect of their employees/gig-contractors.
Ukrainian labor laws permit employers to restrict their employees to work for specific employers or any employers during the term of employment. Additional restrictions are also applicable for the members of the executive body of limited liability and additional liability companies (eg, directors).
For instance, the members of the executive body cannot, without a consent of general meeting or supervisory board:
Breach of these obligations by the members of the executive body shall lead to termination of employment relations.
At the same time, Diia City legislation allows for non-compete agreements between Diia City residents and their employees/gig-contractors. Such non-compete agreements should be concluded in writing and should include compensation for non-compete, the term length (maximum duration of 12 months upon termination of relations), the territory and an exhaustive list of competitive activities.
Last modified 2 Jul 2024
Post-termination restrictions should not be unreasonable or go further than necessary to protect the legitimate interests of the employer.
In practice, restrictions run the risk of being held to be unenforceable if they are a) for a duration of longer than 6 months and/or b) applicable in a territory wider than the emirate in which the employee was working.
Restrictive covenants are generally difficult to enforce in the UAE and injunctive relief (ie, a mandatory order to stop doing certain action) is not available for a breach under the Labor Law. Any remedy is restricted to damages only.
Parties are permitted to include a liquidated damages clause in the employment contract as it is not possible to obtain an injunction onshore in the UAE, although there are rules against "exorbitant" penalties being applied in employment contracts under the Civil Code. It is possible to seek a ban on the employee's residence visa if they are in breach of a restrictive covenant which would prevent them from working in the territory of UAE although in practice this is seldom achieved.
Injunctive relief can be obtained in DIFC and ADGM.
Typically no longer than 6 to 12 months.
Typically no longer than 6 to 12 months.
Last modified 2 Jul 2024
Considered to be in restraint of trade and void. However, those that protect the employer's legitimate business interests may be enforced if reasonable. Must be tailored for the specific business and the risks posed by the employee. Garden leave is common for senior employees.
Permissible in narrow, justifiable circumstances. Typically no longer than 3 to 6 (maximum of 12) months, depending on the circumstances.
Permissible in specific circumstances. Typically no longer than 3 to 6 (maximum of 12) months, depending on the circumstances.
Permissible. Length of restriction will depend on the circumstances.
Last modified 2 Jul 2024
Permissible restraints are generally governed by state law (statutory and common law) and vary significantly from state to state. In most states, post-employment restrictions that are reasonably necessary to protect employer's legitimate business interests are enforced.
Employers are monitoring federal regulatory developments. On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to finalize a rule banning any new noncompete restrictions for workers in the US. The final rule mirrors, in significant part, the original proposed rule from January 2023, banning all new noncompetes and rendering most existing noncompetes unenforceable. Unlike the original proposal, it allows existing noncompetes applicable to a limited number of senior executives to remain in place. If it survives expected legal challenges, the FTC’s final rule will invalidate most noncompetes, including almost 30 million existing noncompete agreements as well as millions of future contracts, and preempt less restrictive state laws governing noncompetes.
On May 30, 2023, NLRB GC Jennifer Abruzzo issued a memorandum asserting that certain noncompete provisions in employment-related agreements violate the National Labor Relations Act (NLRA). While GC memoranda are not binding and do not represent the views of the Board or federal appellate courts, several complaints have adopted the GC’s theory.
Other federal agencies are likewise scrutinizing noncompetes as part of the Biden Administration’s “whole of government” approach to promoting worker mobility.
Enforcement of non-competes varies from state to state, and states and localities continue to place limits on non-competes. Where they are permitted, restrictions lasting from 6 months to 1 year are generally deemed reasonable, and restrictions lasting more than 2 years are generally considered unreasonable (except in connection with the sale of a business). Some states and localities prohibit or otherwise strictly limit non-competes in the employment context by statute, except in certain circumstances (eg, sale of a business).
This is a rapidly developing area of law. Accordingly, companies are encouraged to monitor the landscape and consider the impact of new enforcement initiatives and laws (which may also impact transactions).
Enforcement of customer non-solicits varies from state to state. They are generally permissible if the employee was involved with a customer and the employer aided in developing the relationship or if the employee obtained confidential information from or about the customer. Customer non-solicits are treated similarly to non-competes in most states, including that they are generally prohibited in California.
Enforcement of employee non-solicits varies from state to state. They are generally permissible, except in California.
Last modified 2 Jul 2024
