Non-competition agreement

It is called non-competition agreement (or full dedication agreement) that contractual agreement reached between the company and the worker, by which the latter cannot provide services for another company, whether or not from the same sector.

This is an agreement that is normally legal, although it usually has some legal limits, such as that it must be accepted by both parties and the employer must pay an appropriate financial amount to the worker.

In general, and given its purpose, the agreement comes into force immediately after the beginning of the contractual relationship or upon acceptance and signature by both parties, if said agreement was made after the beginning of the employment relationship.

Legislation

This agreement can create conflict given the existence of contracts with third companies and companies cannot limit the worker's ability to promote. To solve this problem, this contractual clause will only be applicable if the worker receives compensation as compensation so that in the event that the worker incurs the agreement, he must return what was paid for this concept.

This law is regulated by Royal Legislative Decree 1/1995, of March 24, which approves the consolidated text of the Workers' Statute Law.

Article 21. Agreement of non-competition and permanence in the company.

1. A worker ' s labour allowance for various entrepreneurs may not be made when it is deemed unfair or when full dedication is paid through express economic compensation, in the terms that are agreed to.
2. The non-competitive pact for after the termination of the employment contract, which may not last longer than two years for the technicians and six months for the other workers, will only be valid if the following requirements are met:
   1. That the entrepreneur has an effective industrial or commercial interest in it, and
   2. That the worker is satisfied with adequate economic compensation.
3. In the event of economic compensation for full dedication, the worker may terminate the agreement and recover his or her freedom of work in another job, communicating it in writing to the employer with a thirty-day notice, thereby losing economic compensation or other rights linked to full dedication.
4. When the worker has received a professional specialization from the employer in order to launch specific projects or perform a specific job, he may agree between the two to stay in the company for a certain time. The agreement shall not last longer than two years and shall always be formalized in writing. If the worker leaves the job before the deadline, the employer shall have the right to compensation for damages. (The latter is for permanence clauses that are only applicable for indefinite contracts)

Purpose

The main purpose of the non-competition agreement is to prevent the employee from providing services that may harm the employing company, and it is not necessary for said services to be provided for competing companies.