📄 Does a non-compete clause really bind me for two years after I leave?

With conditions

Quick answer

Conditionally: a non-compete clause may last at most two years after employment ends, but only if it meets strict statutory conditions — otherwise it does not bind you. Under the Employment Relationships Act (ZDR-1, Articles 40–42) it is valid only if it is set out in writing in the employment contract and if at work you acquired special technical, production or business knowledge and business connections. The key point, most often overlooked: the clause is void if the contract does not agree monetary compensation for observing it — this is at least a third of the average monthly pay from the last three months, for the whole time it applies. The widespread myth »a signed clause always binds me« is therefore false: without compensation it is invalid, and it may not last more than 2 years. There is also a way out: if you terminated the contract because of a serious breach by the employer, the clause ends if within one month you declare in writing that you are not bound by it. The employer and employee can also agree to end the clause by consent.

📋 The rules

A non-compete clause may last at most 2 years after the employment contract ends and is valid only if it is set out in writing in the contract (Article 40 ZDR-1).
It may be agreed only for an employee who acquired special technical, production or business knowledge and business connections at work; without that condition it has no basis.
The clause is void without agreed monetary compensation (Article 41): this is at least a third of the average monthly pay from the last three months before leaving.
If the employee terminates because of a serious breach by the employer, the clause ends if within one month they declare in writing that they are not bound (Article 42).
The employer and employee can agree to end the clause by consent at any time, and can also agree on damages for breaching it.

🔓 Exceptions

The non-compete clause must be distinguished from the non-compete prohibition (Articles 37–39 ZDR-1), which applies during employment by law and needs no compensation; the clause takes effect only after leaving and must be paid.
If the employer terminates the contract for a business reason without the employee's fault, the clause's validity is judged restrictively; case law protects the employee from remaining bound without adequate compensation after a no-fault job loss.
Compensation is paid for the actual period of observing the clause; if the employee breaches it, they lose the right to compensation and are liable for damage, while the employer must prove the damage caused.

⚠️ Penalties & fines

For the employee the biggest risk is a breach of a valid clause: if, despite being paid compensation, they take a job with a competitor or start a competing activity, they must return the compensation received and reimburse the proven damage, and the contract may also set a contractual penalty. The employer can seek in court an injunction against the competing conduct and damages. The reverse holds for the employer: if it does not pay the compensation though it was agreed, the clause no longer binds the employee, who may instead claim payment. An overlooked trap is a thoughtless signature: many agree to a clause without compensation and only realise on leaving that it is void — or the opposite, that a paid clause really does restrict them in their next job. Because it limits earnings, a legal review of the contract pays off before signing and before changing jobs.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

How long can a non-compete clause bind me?

A non-compete clause may last at most two years after the employment contract ends. A longer period is not allowed and does not apply in that part; the clause must also be set out in writing in the contract and backed by agreed monetary compensation, otherwise it is void.

Is the clause valid if there is no compensation in the contract?

No. If the employment contract does not agree monetary compensation for observing the clause, it is void and does not bind you. The compensation must be at least a third of your average monthly pay from the last three months before your employment ends.

How much is the compensation for observing the clause?

At least a third of the employee's average monthly pay in the last three months before the contract ends, and for the whole time the clause applies. The amount and manner of payment must be set in the contract; without agreed compensation the clause simply does not apply.

Can I avoid the clause if I resign?

It depends on the reason. If you terminated the contract because of a serious breach by the employer, the clause ends if within one month of leaving you declare in writing that you are not bound by it. With an ordinary resignation on your part, the clause in principle remains in force where the conditions are met.

What do I risk if I breach the clause?

If, despite a valid and paid clause, you work for a competitor, you must return the compensation received and reimburse the proven damage, and the contract may set a contractual penalty. The employer can also seek an injunction against the competing conduct in court, so the risk can be high.

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