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A clause restricting an employee’s occupation is not valid in the absence of conditions that justify it.

An employer claimed that a former employee violated a non-employment clause by starting work for a competitor and taking trade secrets with him.

The court dismissed the claim due to the absence of a valid contractual obligation not to compete. A restriction on employment will be valid in four cases, depending on the position held by the employee: there is a “trade secret”, the employee has undergone special training, the employee was given special consideration for his commitment to restrict employment, and the employee violated the duty of good faith and trust. Here, we are dealing with an employee whose restrictive provision in the agreement was not valid for the date and changes in the position in which he was employed, did not receive special training and throughout his employment the salary he received was not high compared to this market and did not include special consideration for a commitment not to compete with the employer after the end of the employment period. Therefore, the restriction on employment is not valid in the circumstances of the case.

 

Doron Afik

Managing Partner at AFIK & Co. Attorneys & Notary

Jurisdiction: Tel Aviv


Phone: +972-3-6093609

Email: doron@afiklaw.com