Konkurenční doložka

Under Czech law

The non-compete clause is regulated by § 310–§ 311 of the Labour Code (Act No. 262/2006 Sb.). It may bind the employee for at most one year after termination and only where justifiable by the information, know-how and knowledge the employee gained. The employer''s counter-obligation is not optional: monetary compensation of at least one half of average monthly earnings for every month of compliance. Without it, the clause is invalid. A contractual penalty for breach is permitted; paying it releases the employee (§ 310 odst. 3).

The employer may withdraw from the clause only during employment; the case law requires a contractually agreed withdrawal ground — a bare "we changed our mind" after the employee''s notice does not work. Probation-period termination rules and the writing requirement apply throughout.

A practical example

A sales director with a 12-month non-compete and a 100 000 Kč average salary resigns. Her ex-employer must pay her at least 50 000 Kč monthly for the year — 600 000 Kč for the protection. Realising the cost, it tries to withdraw a week after her notice; with no agreed withdrawal ground, courts hold the clause stands, and so does the payment duty.

When you need a lawyer

Before signing (scope: what exactly counts as "competition"?), at resignation (is the clause valid, and what does compliance pay?), and when the employer stops paying — non-payment typically lets the employee terminate the clause and compete freely, but the steps must be done correctly.