Legal Q&A · Employment Law & HR

Is a post-employment non-compete clause valid, and must compensation be paid?

Law as at 21 July 2026

Short answer

Yes, but under strict conditions. A post-employment restriction may be agreed for a maximum of one year and only with an employee who could have acquired sensitive knowledge. The employer must pay at least 50% of average monthly earnings for each restricted month; without compensation, the clause is invalid. Any contractual penalty must not exceed the total compensation.

When is the clause valid?

Section 83a of the Labour Code governs restrictions on gainful activity after employment ends. Several conditions must be met together:

  • the restriction lasts no more than one year after employment ends (paragraph 1);
  • it may be agreed only with an employee who had the opportunity to acquire information or knowledge not commonly available, whose use could cause substantial harm to the employer (paragraph 2);
  • the employer must provide reasonable monetary compensation of at least 50% of average monthly earnings for each month of compliance (paragraph 4); this is a condition of validity, so an “unpaid” clause is invalid;
  • it must form part of the employment contract, otherwise it is invalid (paragraph 8).

If the restriction exceeds what is necessary to protect the employer, the court may limit or cancel it (paragraph 3).

What contractual penalty can be agreed?

A contractual penalty may be agreed for breach, but it must not exceed the total compensation under paragraph 4, and payment extinguishes the obligation (Section 83a(5)). The employer may withdraw from the clause only while employment continues (paragraph 6); the employee may terminate it by notice if compensation has not been paid within 15 days after it falls due (paragraph 7).

Distinguish this from competition during employment

Competitive activity during employment is different: under Section 83, the employee may undertake it only with the employer’s prior written consent. If the employer does not respond within 15 days, consent is deemed granted.

We structure non-compete clauses to be enforceable and proportionate through our non-compete clause service, as part of employment contracts and documentation, linked to internal regulations and policies protecting know-how.

This answer provides general information on the law as at 21 July 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.

More legal questions

All questions and answers
  1. My employer has not paid my wages. Can I terminate the employment immediately, and what am I entitled to? Yes, if the employer has not paid you your wages or part of them within 15 days of their due date. The immediate termination must be in writing, must describe the ground in factual terms and must be delivered to the employer within one month of the day on which you learned of the ground. On a valid immediate termination you are entitled, besides the wages owed, to wage compensation in the amount of your average monthly earnings for a notice period of two months.
  2. An employee has not come to work for several days and is not responding. Can we terminate the employment immediately? You can, if the absence is unexcused and of an intensity that the court will accept as a serious breach of work discipline; an isolated one-day absence by an otherwise trouble-free employee may not be enough. First check whether the employee is not on sick leave or facing another obstacle to work that they will demonstrate later. The immediate termination must be delivered into their own hands within two months of the day on which you learned of the absence, and with an employee who is not responding you need a carefully considered delivery plan.
  3. We are abolishing a post. What must a redundancy notice satisfy in order to stand? You need a written decision on an organisational change adopted before the notice, an employee who became redundant precisely as a result of it, and the duty to offer other work discharged. The burden of proof lies with the employer, and the court also examines whether the change was not merely feigned. On top of that you must watch the protected period, discussion with the employee representatives, the notice period and severance pay; and you may not recreate the abolished post for two months.
  4. How long is the notice period, and when does it start? The notice period is at least one month. If employment has lasted at least one year when notice is served, it increases to at least two months; for notice on organisational or health grounds after at least five years of employment, it is at least three months. The notice period always starts on the first day of the calendar month following service of notice.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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