Legislator Case Law & Legislation
I PKN 540/98 AI generated

Non-compete clause without employer compensation obligation is void due to violation of freedom of work.

Case Number I PKN 540/98
Court / Authority
Jurisdiction Poland (PL)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

The Supreme Court dismissed the cassation appeal against a lower court ruling that voided a non-compete clause. The plaintiff argued for damages based on the clause, while the defendant contended it was invalid because it lacked a reciprocal obligation for the employer to pay compensation. The court held that before the relevant law change, such a clause was void as it unilaterally penalized the employee without guaranteeing compensation, violating freedom of work.

Legislator headnote

AI generated

Art. 10 KP; Art. 18 § 2 KP; Art. 58 § 2 KC; Art. 300 KP; Art. 393 § 12 KPC: A non-compete clause is void if it imposes a penalty on the employee without a reciprocal obligation for the employer to pay compensation, as this violates the principle of freedom of work.

Keywords

AI generated
non-compete clause validity freedom of work principle reciprocal compensation obligation unilateral penalty clause employment contract voidness freedom of employment termination labor law sanctions

Cited Legislation

AI generated
Art. 10 KP
Art. 18 § 2 KP
Art. 58 § 2 KC
Art. 300 KP
Art. 393 § 12 KPC

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