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An occupation restriction clause shall be valid only if it is justified

September 20, 2024
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An employer contended that a former employee breached an employment restriction clause by moving to a competitor and taking with him commercial secrets.

The Court dismissed the claim due to the lack of a valid non-compete contractual obligation. An employment restriction clause will be valid in four cases and depending the employee’s position: There is a "commercial secret", the employee has undergone special training, the employee was given a special consideration for his commitment to limit occupation, and the employee breached the duty of good faith and trust. Here, the employee’s occupation restriction clause is not valid under the period of time and changes in the position in which he was employed. Further, he did not receive special training, during his entire period of work the salary he received was not high compared to this market and did not include a special consideration for a commitment not to compete with the employer after the end of the work period. Therefore, the occupation restriction clause is not valid under the circumstances.