Non-competition clause

Legal guide

automatic translation from Polish

Breaking of non-competition agreement

In accordance with art. 1011 § 2 of the Labor Code, an infringement of the employee's non-competition clause creates on the side of the employer who suffered damage the right to seek compensation. In the event of an unintentional breach of contract, it is limited to three times the employee's monthly salary, but if the breach is intentional (which seems to be a much more common case), the employee is liable up to the amount of all damage suffered. A similar liability (unlimited, however, in the case of unintentionality) is imposed on the employee who entered into a non-competition agreement after termination of employment, but such an agreement may also include a contractual penalty, which not only will have a fixed amount independent of the damage suffered, it may still be imposed on an employee only for violating the prohibition of competition, without causing any harm as such. It should also be emphasized that, in accordance with the judgment of the Supreme Court of February 12, 2013, reference number act II PK 165/12, refusal to sign a non-competition agreement after the termination of the employment contract containing a penalty in a reasonable amount, reasonable in relation to the employee's remuneration, may constitute the basis for terminating a speech for work.