Non-compete clause in employment contract without compensation is invalid under Polish Labor Code.
Legislator summary
AI generatedThe Supreme Court dismissed the plaintiff's cassation appeal against a lower court ruling that rejected his claim for damages based on a non-compete agreement. The court found that the clause in the employment contract merely prohibited the disclosure of trade secrets, aligning with the Anti-Unfair Competition Act, rather than constituting a valid non-compete agreement under the Labor Code. Consequently, the plaintiff was not bound by a non-compete restriction and could not claim damages for alleged breach of such a non-existent agreement.
Legislator headnote
AI generatedArt. 11 ust. 4 ustawy o zwalczaniu nieuczciwej konkurencji; Art. 1012 k.p.: A clause in an employment contract prohibiting the disclosure of trade secrets does not constitute a valid non-compete agreement if it lacks a prohibition on competing activities and does not include compensation for the employee.