When it comes to labor law and employment in Romania, the employment contract in Romania is the main instrument that regulates labor law relations, establishing rights and obligations for both the employer and the employee. Before the conclusion of the employment agreement in Romania, the parties establish the clauses by mutual agreement that will govern the labor law and employment relations in Romania, the bilateral agreement being mandatory. Among the provisions that can be inserted in the work contract in Romania are the clauses of termination of the registered employment agreement in Romania, suspension of the employment contract in Romania, contractual dismissal in Romania, non-compete clause in agreement, non-compete agreement, confidentiality clause, decision to terminate the work contract in Romania etc. This article addresses the topic of non-compete clause in agreement in Romania, the notion, characteristics, situations in which it applies and does not apply. The Romanian Law Firm Pavel, Margarit and Associates is an employment law firm in Romania which is internationally recognized in the field of labor law for its highly experienced labor lawyers in Romania, which is why it recommends contacting an employee rights lawyer in Romania, labor and employment litigation lawyer in Romania, an employment lawyer in Romania, a labor law lawyer in Romania, employment law attorney in Romania, employment law solicitors in Romania, lawyers for workers compensation in Romania or lawyers for work related issues in Romania who can provide you labor lawyer consultation in Romania in any labor law related matter in order to meet all the conditions stated in the employment and labor laws and regulations in Romania.

What is the non-compete clause in agreement in Romania?

As regulated in the employment and labor laws and regulations in Romania, the non-compete clause in agreement in Romania is a way of defending for the employer, and its effectiveness occurs in the event of termination of the work contract in Romania. The clause constrains the employee as under the assumption of terminating the employment contract in Romania, not to perform, for his own interest or for the benefit of a third party, an activity which is in competition with that provided to its employer in exchange for a monthly non-compete allowance. Thus, the non-compete agreement in Romania implies rights and obligations for both parties.

Non-compete clause in agreement in Romania – characteristics

In labor law and employment in Romania, an important aspect to take into consideration is the difference between the non-compete clause in agreement in Romania and the confidentiality clause. The non-compete agreement has effects in case of termination of the employment contract in Romania, as it becomes valid one of the obligations of the employee, namely not to carry out activities in competition with the one provided to his employer, as, as well as one of the employer’s obligations, namely the payment of an allowance. The confidentiality clause takes effect during the execution of a work contract in Romania, even under the assumption of suspension of the employment contract in Romania. The main similarity between the 2 clauses is the fact that both are established and agreed by the parties by mutual agreement, following the negotiations period.

The employment and labor laws and regulations in Romania stipulate that the non-compete agreement in Romania is effective only if the contents of an employment contract in Romania expressly provides for activities that are forbidden to the employee in the event of termination of the work contract in Romania, the amount of the monthly allowance, the period for which the non-compete clause in agreement in Romania takes effect, the third parties in favor of which the performance of the activity is prohibited and the geographical area where the employee can be in real competition with the employer.

An employee rights lawyer in Romania, a labor and employment litigation lawyer in Romania, an employment lawyer in Romania, a labor law lawyer in Romania, employment law attorney in Romania, employment law solicitors in Romania, lawyers for workers compensation in Romania or lawyers for work related issues in Romania can assist you in various labor law situations in Romania, such as compliance with the non-compete agreement in Romania, issues related to the conclusion of the employment contract in Romania, suspension of the employment contract in Romania, termination of the registered employment agreement in Romania, resignation with notice, labor disputes arising from the violation of the employer’s obligations to pay salaries, advice on the possibility of challenging the decision to terminate the employment contract in Romania, contractual dismissal in Romania or any other cases that are not in accordance with the Romanian labor laws.

The non-compete allowance

As regulated in the Romanian labor laws, the non-compete allowance is at least 50% from the average of the gross salary income of the employee in the last 6 months prior to the date when the employment contract ceased or, if the duration of the employment contract was less than 6 months, from the average of the gross monthly salary income due to it during the term of the contract. The non-compete clause in agreement may take effect for a maximum period of 2 years from the date on which an employment contract has ceased.

The Romanian labor laws establish that there are also situations in which the non-compete clause in agreement in Romania does not apply, such as the assumptions of termination of the employment contract in Romania in some situations in which it occurs by law, but also the assumptions in which the dismissal occurred for reasons not related to the employee.

“At a practical level, if the non-compete clause in agreement in Romania is not complied with, it is one of the main reasons for the occurrence of labor disputes, which is why it is necessary to be assisted by a labor and employment litigation lawyer in Romania, an employment lawyer in Romania. The first steps can always be discussed in a labor lawyer consultation in Romania”, said the Managing Partner Dr. Radu Pavel of the Romanian Law Firm Pavel, Margarit and Associates, an employment law firm in Romania.

In conclusion, the non-compete clause in agreement in Romania consists in the way of defending of the employer, in case of termination of the employment contract in Romania, the employee being forced not to perform, and, for its own or a third party’s interest, an activity which is in competition with that provided to its employer, in return for a monthly non-compete allowance. In practice, there are many situations where the non-compete clause in agreement in Romania is not respected, being a main source of labor disputes.

The Romanian law firm Pavel, Margarit and Associates, which is an employment law firm in Romania, invites you to contact with confidence a labor and employment litigation lawyer in Romania, an employment lawyer in Romania, employment law attorney in Romania, employment law solicitors in Romania, labor lawyers in Romania, lawyers for workers compensation in Romania or lawyers for work related issues in Romania to assist you in various situations that may arise in the field of labor law in Romania, such as compliance with the non-compete clause in agreement in Romania, issues related to the conclusion of the employment contract in Romania according with the Romanian labor laws, suspension of the work contract in Romania, termination of the registered employment agreement in Romania, resignation with notice, labor disputes arising from non-payment of salaries, labor disputes, advice on the possibility to challenge the decision to terminate the employment contract in Romania, contractual dismissal in Romania, etc., by filling in the contact form with a simple access to the address https://www.avocatpavel.com/contact-us/ in order to have a labor lawyer consultation in Romania.