It depends on the wording. The Commercial Code permits restrictions on an agent's competing activity for up to two years after the agreement ends, within a defined territory or for a defined group of customers there. A clause targeting your customer base has prospects of enforcement; a blanket prohibition on doing business may be restricted or declared invalid by the court. Do not confuse this with an employee non-compete, which has separate, stricter requirements.
The agency relationship has ended, and clients whom the agent served on your behalf for years are leaving too. Whether this can be prevented depends on one provision in the agency agreement: the non-compete clause. Its fate was usually decided at signing, rather than in court.
The statutory limits
Section 672a of the Commercial Code (Act No. 513/1991 Coll.) regulates commercial agents’ non-compete clauses and sets three simultaneous conditions: writing, limited duration and limited scope.
The agreement may provide in writing that, for no more than two years after it ends, the commercial agent may not, on their own account or another person’s account, within a defined territory or in relation to a defined group of customers there, carry on the activity covered by the agency or another activity competing with the principal’s business.
— Section 672a(1) of the Commercial Code (unofficial English translation)
A safeguard against excessive restrictions also applies: a court may restrict or invalidate a clause that limits the agent more than necessary to protect the principal (Section 672a(2)).
Scope determines whether the clause survives
Clauses fail because they prohibit everything, rather than because they protect too specifically. A blanket ban on operating in the sector is a textbook candidate for restriction or invalidity. By contrast, a clause targeting only your customers is much easier to defend because it leaves the rest of the market open.
Recent Czech case law on a similarly structured provision illustrates this. In judgment 21 Co 23/2025 of 16 April 2025, the Regional Court in Prague upheld an insurance intermediary’s obligation to pay a contractual penalty under a two-year clause covering all of Czechia, even without separate compensation for the restriction. The court considered the defined group of persons decisive: the clause prohibited activity only towards the principal’s clients, excluded clients the agent already had before the agreement, and left the agent free to do business with anyone else.
Do not confuse it with an employee clause
Employees have a different regime: Section 83a of the Labour Code makes validity conditional on mandatory financial compensation, a maximum duration of one year and inclusion directly in the employment contract. We discuss it in detail in is a post-employment non-compete valid. If the agent actually works as an employee, the relationship risks being assessed under employment law and its stricter conditions. The agreement’s label alone offers no protection.
Drafting a clause that can withstand scrutiny
The agreement needs a precise duration, no more than two years, territory, group of persons and description of the prohibited activity linked to the agency’s subject matter. The group will usually be customers the agent served or learned about during the agency. An exception for clients the agent brought in, or payment for refraining from competition, helps balance the clause. A reasonable contractual penalty provides the sanction; enforcement then depends on documenting the diversion of clients.
How we can help
We draft or review the clause through commercial agency agreements and extend customer protection to distribution and franchise agreements. If the agent is already taking clients, we assess the clause and penalty’s prospects and take over court representation. Have the clause reviewed before you need to rely on it.
This answer provides general information on the law as at 29 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
