Facebook Twitter LinkedIn Youtube Previous Next The Supreme Court determines that the non-competition pact is void if worker's compensation is insufficient See the PDF The Supreme Court, in its recent ruling of October 18, 2021, has determined that a two-year post-contractual non-competition agreement that was compensated with 35 euros per month is not valid because the amount paid to the worker in relation to the sacrifice required. The post-contractual non-competition pact implies that, upon termination of the employment relationship, the worker will be limited in their right to work, having to refrain from providing their services for other companies, provided that these may involve competition. Specifically, article 21 of the Workers' Statute establishes that said agreement may not have a duration of more than two years and must meet the following requirements: That the employer has an effective industrial or commercial interest on it. That the worker is satisfied with adequate financial compensation. The judgment we are referring to is exactly about adequate financial compensation. To establish whether the economic compensation is adequate, the High Court establishes that the following factors must be taken into account: The duration to which the non-compete agreement extends. The financial compensation paid to the worker. The amount of compensation paid by the worker to the company in the event of non-compliance. En el caso de autos, el (1) periodo o duración de no competencia pactado con el trabajador es de dos años. La (2) compensación económica es de 35 euros mensuales, que equivale al 1,76% de su salario mensual y la (3) indemnización que tendría que abonar el trabajador por incumplimiento es de 6 meses de salario. Analizadas las circunstancias anteriores, el Tribunal Supremo concluye que tal pacto no resulta ajustado a derecho, tomando en consideración que la duración del pacto es la máxima establecida en la normativa, la cantidad abonada al trabajador es insuficiente y existe una clara desproporción entre la cantidad percibida y la suma que tendría que abonar el trabajador a la empresa en caso de incumplimiento de dicho pacto. Therefore, by not complying with the adequacy requirement in the economic compensation, the High Court declares the invalidity of the post-contractual non-competition pact and does not recognize the right to compensation for breach of the non-competition pact that the company claimed from the worker. © This information is the property of Escura , lawyers and economists , and its reproduction is prohibited without express permission. Check our Human Resources area November 30, 2021 | Human Resources | No comment Share on social networks Facebook Twitter LinkedIn Email Areas Professionals Offices Categories: Choose category Criminal Compliance Company Law (Corporate) Family right Fiscal - Accounting R + D + i International Desk Italian Desk Litigation News from our Law Firm Pharmacy Offices Transfer Pricing Money Laundering Prevention Data Protection Human Resources Residences Press room Town planning Subscribe to our circulars I accept and have read the data protection policy E-mail offices : escura@escura.com Law Firm Escura SLP. Lawyers and Economists SUBSCRIBE TO OUR CIRCULARS I accept and have read the data protection policy Legal information | Limitation of liability | Cookies policy | Barcelona | Madrid | Calafell - Vendrell | Lawyers | Economists We use our own and third-party cookies to obtain statistical data on the navigation of our users and improve our services. You can get more information in ourCookies policy. Likewise, you can accept all the cookies that we use by pressing the following button, or configure or reject them . ACCEPT ALL COOKIES