Non-renewal of non-compete agreement after employment termination is not required upon employee's board appointment.
Legislator summary
AI generatedThe Supreme Court dismissed the cassation appeal filed by a company against a lower court judgment awarding damages for non-competition violations. The plaintiff, a former employee appointed to the company's board, argued that his new role invalidated the existing non-compete agreement. The court held that the non-compete remained valid and independent of the employment contract, as the board appointment created a separate legal relationship governed by commercial law. Consequently, the company was ordered to pay the awarded damages and the costs of the cassation proceedings.
Legislator headnote
AI generatedArt. 374 k.h.; Art. 204 § 1 k.h.: The appointment of an employee to the board of directors does not require the renewal or confirmation of a non-compete agreement, as such an agreement remains valid and independent of the employment relationship, which continues to be governed by labor law principles.