Non-Compete Agreement During Employment

In today’s competitive job market, qualified employees are a rare asset. Companies often entrust them with sensitive information such as production know-how or proprietary processes. To protect this data and prevent employee transfers to competitors, employers increasingly use non-compete agreements.

According to Article 101 of the Polish Labour Code, the employee agrees not to engage in competitive activity during the term of employment. While a general duty of loyalty exists under Article 100 even without a formal agreement, a non-compete contract provides clarity on the scope of restrictions and potential liability for breaches.

Such agreements protect employers not only from losing key staff but also from the disclosure of protected information—technical data, procedures, or marketing strategies. Even without a formal agreement, this data may qualify as trade secrets under the Unfair Competition Act.

A non-compete agreement during employment does not require additional compensation. Refusal to sign one may affect trust and could lead to termination. For instance, the Supreme Court ruling of September 24, 2003, upheld termination of a doctor’s employment due to refusal to sign a non-compete agreement.

The agreement may be invalid if it excessively restricts the employee’s professional freedom or vaguely defines competitive activity. It must also be signed by an authorized representative—otherwise, it may be legally void.