Judgment of Supreme Court

11 April 2001

Case No. II ZP 7/01

Non-competition agreement (labour law)

If the employer fails to comply with the obligation to pay compensation to the former employee, the agreement not to compete after the end of the employment relationship ceases to be binding on the former employee prior to the end of its stated term, but the employee retains a claim for compensation (Labour Code Art. 100[2] §2).