The non-competition agreement is aimed at securing the employer’s interests against possible, undesirable behavior of current employees and former employees. A non-competition agreement may be concluded for the duration of the employment relationship, as well as for a definite period after the termination of the employment contract. The non-competition clause is regulated in Art. 1011 – 1014 of the Labor Code.
The employer has the right to sign such an agreement in writing with employees who have access to particularly important information for the entrepreneur. Based on the previous jurisprudence of the Supreme Court, it should be stated that it is the entrepreneur who determines what information is of particular importance to him and who has access to this information. Pursuant to Art. 1012 par. 3 of the Labor Code, it follows that compensation under a non-competition agreement after termination of employment may not be lower than 25% of the remuneration received by the employee prior to termination of employment for a period corresponding to the duration of the non-competition clause. Based on the content of the judgment of the Supreme Court of 8 January 2008, I PK 161/07, it follows that if the employment relationship lasted shorter than the contractual period of non-competition after termination of employment, the amount of compensation should refer to the length of the non-competition clause, and not to the actual duration of the employment contract.