Non-competition clause

The non-competition clause applies for the duration of the employment contract. Article L.16 expressly states this: provided that the employee carries out another professional activity outside their working hours, such activity must not be likely to compete with the company.

The non-competition obligation also arises from the employment contract. In such cases, the employment contract must contain this so-called non-competition clause, which prohibits the employee, upon expiry of the contract, from carrying out certain activities in certain locations.

Where a non-competition clause is included in the contract, it can only be limited:

• Firstly, it may only relate to an activity that is likely to compete with the company;
• Secondly, it may only apply for a period of six months following the termination of the contract,
• Finally, it may not apply within a radius of 15 kilometres of the place of employment, i.e. the company.

Failure to comply with these principles where a non-competition clause is included in the contract entitles the employer to damages, the amount of which will be determined by the employment tribunal.

A non-competition clause is generally accompanied by a compensation clause in the event that the employee complies with these principles. Both parties may include in the contract a compensation clause in the event that the employee complies correctly with these principles. The amount of this compensation is set in advance, at the discretion of the parties signing the contract.