Post-employment non-compete agreement (zakaz konkurencji)

Published byDocMuse

An agreement under which an employee with access to particularly important information undertakes not to compete with the employer for a set time after leaving. The employer pays compensation of at least 25% of the pay received before the employment ended, for a period equal to the ban. It must be in writing on pain of nullity, and stops binding when the employer stops paying.

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Common questions

How much must post-employment non-compete compensation be in Poland?

At least 25% of the pay the employee received before the employment ended, for a period equal to the ban (art. 101² § 3 of the Labour Code). For a one-year ban that is at least a quarter of a year's earnings, usually paid monthly. A lower figure is void to that extent and the statutory minimum replaces it.

Can a non-compete apply without compensation?

After the employment has ended — no. A post-employment non-compete is paid by law, and when the employer stops paying, the ban lapses (art. 101² § 2 of the Labour Code). Only a non-compete during the employment itself can apply without compensation (art. 101¹).

Can the employer release the employee from the ban to stop paying?

Only where the statute or the agreement allows it. The ban lapses early when the reasons for it cease, but the employer cannot simply drop it unilaterally unless the agreement provides a right to withdraw or terminate. So write that in expressly if the parties want it.