I PK 528/02 AI generated

Non-compete penalty clauses are valid under civil law but must be adjusted by labor law principles.

Case Number I PK 528/02

Court / Authority Sąd Najwyższy

Jurisdiction

Poland (PL)

Decision Date 2003-10-10

Outcome Partially Allowed

Open official source Machine-readable Markdown (.md)

Legislator summary

AI generated

The Supreme Court quashed the lower court's dismissal of the plaintiff's claim for damages regarding a non-compete agreement. The court held that while the employer failed to pay the agreed penalty in full, this constituted delayed performance rather than a breach of the non-compete obligation itself. Consequently, the court ruled that civil law penalty clauses are applicable to post-employment non-compete agreements but must be adjusted according to labor law principles regarding employer risk and employee liability.

Legislator headnote

AI generated

Art. 483 k.c.; Art. 300 k.p.; Art. 1011 § 1 k.p.; Art. 1011 § 2 k.p.; Art. 1 k.p.: Post-employment non-compete agreements are governed by civil law principles allowing penalty clauses, yet such clauses must be interpreted and adjusted in light of labor law principles concerning the specific risks of the employer and the limited material liability of the former employee.

Keywords

AI generated

non-compete agreement post-employment restriction civil law penalty labor law adjustment delayed performance former employee liability employer risk allocation

Cited Legislation

AI generated

Art. 483 k.c.

Art. 300 k.p.

Art. 1011 § 1 k.p.

Art. 1011 § 2 k.p.

Art. 1 k.p.

Art. 393 § 13 k.p.c.

art. 483 k.c

art. 300 k.p

art. 1012 § 2 k.p

art. 491 k.c

Non-compete penalty clauses are valid under civil law but must be adjusted by labor law principles.

Legislator summary

Legislator headnote

Keywords

Cited Legislation

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