Can I be barred from working for a competitor after leaving?
It depends on a valid clause: yes, but only if you're paid for it. Under the Labour Code (art. 21), a non-compete clause can bar you from competing activities after the contract ends, in exchange for a monthly indemnity the employer must pay for the whole non-compete period. The indemnity is non-salary in nature, is negotiated, and can't be less than 50% of the average gross salary income from the last 6 months before the contract ended. The clause can take effect for at most 2 years from termination. To be valid, the contract must specifically state: the banned activities, the amount of the indemnity, the period, the third parties (competitors) for whom the activity is banned and the geographic area. Without these elements and without the indemnity, the clause has no effect. In short: you can be restricted, but only if you get at least 50% and for at most 2 years.
📋 The rules
- Restricts activity after the contract ends
- Monthly indemnity of at least 50% of the average gross salary (6 months)
- Effects for at most 2 years from termination
- Must state: activities, amount, period, third parties, area
- The indemnity is non-salary in nature
🔓 Exceptions
- A clause without indemnity or the required elements: no effect
- Dismissal for non-attributable reasons: the clause may be inapplicable
- Disproportionate restriction (area/activities): can be reviewed by court
⚠️ Penalties & fines
If you breach a valid non-compete clause, the employer can claim repayment of the indemnity and damages for the harm caused. On the other hand, if the employer doesn't pay the indemnity, the clause no longer has effect and you're free. Note: a clause that doesn't meet the legal conditions (no indemnity, no specific activities, period or area, or one that practically bans any activity) can be declared void or reviewed by a court. To protect your rights: before signing, check that the indemnity of at least 50%, the exact banned activities, the period (max 2 years) and the area are stated; after leaving, make sure you receive the indemnity; and if the restriction seems excessive, ask the court to reduce the clause's effects.
📎 Official sources
❓ Frequently asked
What is a non-compete clause?
It's a clause by which the employer can bar you from competing activities after the employment contract ends, in exchange for a monthly indemnity. The indemnity is mandatory and paid for the whole non-compete period, which can last at most 2 years from the contract's termination.
How much must I get for the non-compete clause?
The monthly non-compete indemnity can't be less than 50% of the average gross salary income from the last 6 months before the contract ended. It's non-salary in nature and is negotiated. Without payment of this indemnity, the non-compete clause has no effect and doesn't bind you.
How long can the clause last?
The non-compete clause can take effect for at most 2 years from the date the employment contract ended. A longer period isn't allowed. Throughout this interval, the employer must pay you the agreed monthly indemnity, or the clause stops having effect.
What must the clause contain to be valid?
To be effective, the clause must specifically state the banned activities, the amount of the monthly indemnity, the period of validity, the third parties (competitors) for whom the activity is banned and the geographic area where you could be in real competition with the employer. Without these, the clause has no effect.
What happens if the employer doesn't pay?
If the employer doesn't pay you the monthly non-compete indemnity, the clause no longer has effect, and you're free to work, including for a competitor. Paying the indemnity is an essential condition for the restriction to bind you. In a dispute, you can go to court.
🔎 Common searches
What people search to land here:
- “non-compete clause indemnity 50”
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- “art 21 labour code non-compete”
- “non-compete clause validity conditions”
- “employer doesn't pay non-compete”
- “non-compete after resignation”