Pact of non-competition and non attendance

Pact of non-competition and non attendance

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Fears for your information? Want you prevent an unfair competition? In Evolutiza Lawyers & Tax Advisors our specially team in labour law inform you about two clauses that shouldn’t miss in the signing of any contract.

There are many agreements that can be entered in an employment relationship between them, the most important, are the pact of non-competition and the pact of non-attendance. Both are regulated by the article 21 of the Status of Workers, part 1 and 2.

Starting with the pact of non-attendance it can be defined as the contractual agreement that company and worker arrive to avoid possible unfair competition from the employee throughout the employment relationship. In this way, the worker has the limitation of not be able to perform his functions, on his own or in another company, when his activity be able to into conflict with interests of his current employer. On the other hand, the worker receive the appropriate financial compensation. Likewise, if the worker breaks the pact he has the obligation to compensate the company for damages caused.

Regarding the pact of non-competition, the main objective of it is avoid that knowledge and information acquired by the worker be used, with later, in the development of an activity that belongs to the same business sector that his previous employer.

However, this pact of non-competition have to meet a series of requirements to be valid:

  • Existence of an effective industrial or commercial interest by the employer
  • It can’t have duration more than two years for technicians or six months for the other workers.
  • An appropriate financial compensation must to be delivered to the worker

Regarding financial compensation is concerned there is a particularity and is the next, you can agree that it is payable each month or can agree that it is paid at the time of completion of the contract or when the clause is applicable .

However, although not very common, the worker can return all amounts received in this concept and so detached from the application of the clause. However, this separation does not excuse you if use of information or breach of confidentiality, to pay compensation to the employer.

For know more about that clauses, do not hesitate to contact us. Because prevention is better than cure, in Evolutiza Lawyers & Tax Advisors we care and we are committed preventive counseling. Contact Us.

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