Confidentiality and Non-competition under new Employment Law

The Employer and the Employee can reach agreement on confidentiality and non-competition in the employment contract.

For the Employee who has the obligation of confidentiality, the Employer can include clauses of non-competition in the employment contract or confidentiality agreement. In such agreement, the Employer shall be liable for compensation for the Employee on a monthly basis during the non-competition term which starts from the termination of employment contract. In case the Employee violates agreement on non-competition, he shall pay penalty to the Employer.

The Employee with obligation of non-competition is limited to senior management personnel, senior technicians or other employees with obligation of confidentiality.

With regards the term of non-competition, according to the new Employment Law, within 2 years upon termination of employment contract, the Employee with obligation of non-competition shall not seek employment in other Employers who manufacture or engage in like product or business and have competitive relationship with the Employer, or start his own business on manufacturing or engaging in like product or business.