HOW LONG CAN A NON-COMPETE CLAUSE BE INCLUDED IN AN EMPLOYMENT CONTRACT SIGNED BETWEEN AN EMPLOYEE AND AN EMPLOYER?

FOR HOW LONG CAN A NON-COMPETE CLAUSE BE INCLUDED IN AN EMPLOYMENT CONTRACT SIGNED BETWEEN AN EMPLOYEE AND AN EMPLOYER?

An employee with legal capacity is obligated towards the employer to refrain from competing with them in any way after the termination of the contract, particularly by opening a competing business on their own account, working for another competing business, or entering into any other type of interest-based relationship with a competing business. However, a non-compete clause cannot contain restrictions that are unreasonable in terms of place, time, and type of work in a way that unfairly jeopardizes the employee's economic future, and its duration, except in special circumstances and conditions, cannot exceed two years (TCO Art. 445).