Legal Updates

An overreaching and generic drafting of a non-competition clause may render it unenforceable

January 14, 2017
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An employee, who was employed for 15 years in a senior position, resigned. The employer contended that the employee commenced working in a competing company and thus moved the Court for an injunction prohibiting him from working for the competitor until the end of two years from the date of termination because of a non-competition clause in the agreement.
The Labor Court held that the non-competition undertaking signed by the employee is generic, has nothing to do with his position or his job and has not been adapted over the years to the knowledge accumulated by the employee as he progresses in the company. The fact that this is a standard commitment, signed by all company employees, takes the sting out of the commitment. Because the conditions for restricting the employee's occupation were not proven, the application was rejected.

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