Supreme Court allows contractual penalty in non-compete agreement despite employer's failure to pay monthly compensation.
Legislator summary
AI generatedThe Supreme Court of Poland allowed the cassation appeal, remanding the case for a new trial on the issue of whether a contractual penalty applies. The lower court dismissed the claim because it failed to examine if the employer's failure to pay monthly compensation allowed the employee to terminate the non-compete obligation. The Court ruled that the employer's delay in paying compensation did not automatically release the employee from the penalty clause for working for a competitor.
Legislator headnote
AI generatedArt. 1012 k.p.; Art. 483 k.c.: A contractual penalty may be stipulated in a non-compete agreement, and the employer's failure to pay monthly compensation does not automatically release the former employee from the obligation to pay the penalty for violating the non-compete clause.