Non-compete clause in Romanian labour law
A non-compete clause bars the former employee from working for a competitor after termination. Maximum duration is 2 years and a monthly allowance is mandatory.
Definiţie
Non-compete clause in Romania
A non-compete clause (art. 21-24 Labour Code) is valid only if it specifies the prohibited activities, the monthly allowance, the duration, the named competitors and the geographic area. The employer must pay at least 50% of the employee's average gross income over the last 6 months as a monthly indemnity, otherwise the clause has no effect.
Maximum duration is 2 years from termination. The clause cannot absolutely block the employee's profession or specialization. It does not apply if the contract ended automatically or for reasons unrelated to the employee. Breach exposes the former employee to repayment of the allowance and damages.
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