An employer is not entitled to compensation for former employee’s competition without a legitimate interest worthy of protection

A company filed a lawsuit against two former employees alleging violation of a written non-compete undertaking and larceny of trade secrets.

The National Labor Court held that a provision restricting occupation will not be automatically enforced and one must prove a "legitimate interest" justifying it, such as proprietary right or quasi-proprietary right in the confidential information, including customer list or interest derived from an employee's obligation to act in good faith.  In this case the company's claim was based only on the company’s desire to prevent its former employees to compete with it. Such interest is not a "legitimate interest" sufficient to impose a non-compete obligation on employees or holding them liable for compensation.