A non-competition clause is a contract between a worker and an employer. A non-competition clause prohibits an employee from participating in a business that competes with the activities of his or her current employer. While an employer can`t require you to sign a non-compete clause, they can terminate or decide not to hire you if you refuse to sign. Non-competition rules are generally not good on the part of the courts. In the event of a dispute over non-competition rules, the courts take into account certain factors in determining whether the agreement is appropriate. If you are negotiating a non-competition clause, you must limit the agreement to what is necessary to protect the employer and claim severance pay in the event of dismissal. Find out below the impact that a non-competition clause can have on you. 9. Does my employer have to pay me extra money in exchange for a non-competition clause? There are sometimes challenges in knowing whether competition bans are legally binding. There is no simple answer; it varies from case to case. Competition bans, also known as Covenants to Not Compete or restrictive covenants, are common in employment contracts, work applications, and contracts for the sale of businesses. The general objective of these agreements is to limit, for a specified period, the capacity of workers who sign the agreement against the employer in a given geographical area. If you sign it, you generally agree that you will not be competing with your employer by taking part in a similar activity, as a worker, independent contractor, owner, partner, significant investor and all other forms of competition identified by your employer to cover its foundations.
Under the current Labour Act, the non-competition clause is primarily intended to protect the employer from a situation in which a worker or former employee asks the employer`s clients. However, due to a lack of staff in the information technology sector in Serbia, IT companies are competing for quality developers. This situation “upsets” the non-competition clause and, as a result, the ban on debauchery is imposed to prohibit the recruitment of employed developers….