Working group assesses need to amend

A working group led by the Ministry of Economic Affairs and Employment has assessed the provisions of non-competition agreements to establish whether they need to be updated, said a government press release.

On the basis of its assessment work, the working group prepared a memorandum, which is now available for commenting. The deadline for comments is 26 September 2019.

The working group analysed the challenges and legal practice associated with non-competition agreements and prohibition of competitive activity, and the extent to which non-competition agreements are used.

The working group consulted employee and employer organisations, attorneys and companies to find how non-competition agreements and prohibition of competitive activity are applied in practice. The supervisory practices of the supervision authority were also investigated.

To limit the growing use of non-competition clauses, the working group examined various methods for implementing legislative amendments. The effects of key alternatives were also assessed.

The working group’s memorandum will undergo a traditional consultation round until 26 September 2019. The work will continue on the basis of the Government Programme.