Non-competition clause

Legal guide

automatic translation from Polish

Expiry of non-competition agreement

The non-competition agreement expires when:

  1. the period for which it was concluded expires;
  2. the reasons justifying it cease to exist;
  3. the employer fails to pay compensation.

The first of the above reasons is the understandable consequence of the fact that the non-competition agreement after termination of employment is of a temporary nature - it is concluded for a specified period and expires after the expiry of the law.

The maximum duration of the contract is not specified in the regulations, however, in accordance with art. 300 of the Labor Code in connection with art. 5 of the Civil Code, it certainly cannot be unreasonably long.

In the case of the second reason for the expiry of the contract, the existence of the above condition arising from art. 1012 § 1 of the Labor Code - such a contract may apply only if the employee still has information so significant that its disclosure or use could expose the employer to harm. If, for a short period of time, this circumstance ceases to occur, the non-competition agreement expires after the termination of the employment relationship.

The third of these reasons is an additional form of protection of the employee's interest - according to it, if the employer fails to pay within one installment of compensation specified in art. 1012 § 3 of the Labor Code, the non-competition agreement ceases to bind the parties. The position adopted in the doctrine in this regard should be considered as far to the benefit of the employee - according to it, if the employer fails to fulfill his obligation, the employee has the choice between undertaking competitive activity (to which he is entitled) or further refraining from it simultaneously maintaining the claim for payment of further installments until the end of the period specified in the contract. Even if he undertakes competitive activity before the end of this period, the claim for payment of installments for the period of effective refraining from it remains, however, still valid and can be enforced in court.