Europe
Generally, CNCs are allowable in Europe only if the employer can show a reasonable business interest in having a CNC.
- In the Netherlands, non-compete clauses (non-concurrentiebeding or concurrentiebeding) are allowed regarding issues such as moving to a new employer and approaching customers of the old company. Unreasonable clauses can be invalidated in court.
- In the United Kingdom, CNCs are called Restraint of Trade clauses and may be used only if the employer can prove a legitimate business interest to protect in entering the clause into the contract. Mere competition will not amount to a legitimate business interest.
- In Germany, CNCs are allowed for a term up to two years. The employer must provide financial compensation for the duration of the CNC amounting to at least half the gross salary. Unreasonable clauses, for example excluding similar jobs in whole Germany, can be invalidated.
- In Belgium, CNCs are restricted to new employments within Belgium and for no more than one year. The employer must pay financial compensation for the duration of the CNC, amounting at least half of the gross salary for the corresponding period.
- In Spain, CNCs are regulated by article 21 of the labor law. CNCs are allowed up to two years for technical professions and six months for other professions.
- In France, CNCs must be limited in time to a maximum of two years and to a region where there the employee's new work can reasonably be seen as competitive. The region can be a city or the whole country, depending on the circumstances. The employer can be forced to pay financial compensation, typically 30 percent of the last salary, depending on the circumstances surrounding the termination of the employment. A CNC may not unreasonably limit the possibilities of the employee to find a new employment.
- In Romania, CNCs are regulated by article 20-4 of the labor code and restricted to two years for managing positions and six months for other positions. The employer must pay financial compensation for the duration of the CNC, amounting to at least 25 percent of the last salary.
- In Portugal, CNCs are regulated by article 136 of the labor code and restricted to two years extendible to three years in cases of access to particularly sensitive information. The employer must pay financial compensation for the duration of the CNC but the law doesn't specify anything regarding the amount of the compensation.
Read more about this topic: Non-compete Clause
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