Employment contracts regulating the relationship between employer and employee may cover not only working conditions and rights, but also additional obligations such as non-competition. A non-competition agreement is a contract in which the employee undertakes to refrain from engaging in certain activities against the employer for a certain period of time. Such agreements can be an important tool for protecting the employer’s legitimate interests, such as protecting its trade secrets and customer list.
Elements of Non-Competition Agreement:
For a valid non-competition agreement, the following elements must be present:
Being in Writing: The contract must be in writing and signed by both parties.
Specificity: The contract should clearly state which activities the worker must avoid. These activities may include competing directly with the employer’s competitors, taking away customers or employees, revealing trade secrets, or taking other actions that could damage the employer’s reputation.
Duration: The duration of the contract must be limited to a reasonable period. According to the Turkish Code of Obligations, the duration of the non-competition agreement cannot exceed two years, except for special circumstances and conditions.
Compensation: The employee must undertake to pay compensation to the employer if he/she violates the non-competition clause. The compensation amount must be specified in the contract.
Validity Conditions of Non-Competition Agreement:
For a non-competition agreement to be valid, the following conditions must be met:
The agreement is necessary to protect the employer’s legitimate interests: The employer should have difficulty protecting its trade secrets or customer list without a non-competition agreement.
The contract should not make it difficult for the worker to earn a living: The contract should not be so strict that it makes it difficult for the worker to find a job or maintain a livelihood.
The contract is based on a mutual obligation: The employer must provide compensation or other benefits to the employee in exchange for non-competition.
Right to Object to Non-Competition Agreement:
The worker has the right to challenge the validity or terms of the non-competition agreement. If the worker thinks that the contract does not meet the above-mentioned conditions or is unfair, he can request the cancellation or correction of the contract by filing a lawsuit.
