Can my employer bar me from working for a competitor?
They can — but they must pay you for it, or the clause is void. A non-compete clause under § 83a of the Labour Code restricts your earning activity after employment ends and may last at most 1 year. The condition many people overlook: the employer is obliged to provide adequate monetary compensation for every month you observe the restriction — and "adequate" means at least 50% of your average monthly earnings. Without agreed compensation the clause is invalid. Compensation is a mandatory element of the clause, not a favour. It falls due on the employer's usual payday for the preceding month, unless you agree otherwise.
📋 The rules
- Governed by § 83a of the Labour Code
- It may last at most 1 year after employment ends
- The employer must pay adequate monetary compensation
- Adequate = at least 50% of average earnings
- Without compensation the clause is invalid
🔓 Exceptions
- The clause must be in writing and define exactly which activity is restricted
- A contractual penalty may be agreed, but not above the total compensation
- The employee may withdraw from the clause if the compensation is not paid
⚠️ Penalties & fines
These clauses are invalid far more often than employers suppose. To stand up, one must be in writing, must define precisely which activity is barred, must have a set duration — a year at most — and must contain monetary compensation. If even one of these is missing, the clause is void and you are not bound by it. A contractual penalty may be agreed, but it may not exceed the total compensation the employer would have paid you. And if they stop paying, you may withdraw from the clause — you are not obliged to observe it for nothing. Before you sign anything, read what they are promising you in return.
📎 Official sources
❓ Frequently asked
How long can the clause last?
At most one year after the employment ends. A longer restriction is not permitted, because it would interfere disproportionately with the constitutionally guaranteed freedom to choose an occupation and to earn a living.
Must the employer pay me for it?
Yes, and it is a mandatory element of the clause. Adequate monetary compensation means at least 50% of your average monthly earnings, paid for every month during which you observe the restriction.
What if there is no compensation in the contract?
The clause is invalid and you are not bound by it. Without agreed adequate compensation, a restriction on earning a living after employment ends cannot stand — that is the settled reading of § 83a.
Can they impose a contractual penalty?
A penalty may be agreed, but it may not exceed the total compensation the employer would have paid you for observing the clause. Anything above that will not hold up in that part.
What if they stop paying the compensation?
You may withdraw from the non-compete clause. The obligation is mutual — you are not required to observe the restriction for free when the other side is not delivering what it promised in return.
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