TBK article 444 regulates the possibility of making a post-employment non-competition agreement between the employee and the employer.
Validity Conditions
- Written form
- The employee must have the capacity to act
- Has access to business secrets or customer circle
- Reasonable in terms of duration, place and subject limitation
Time Limit
Generally it should not exceed 2 years. Longer contracts may be limited by the judge (TBK article 445).
Compensation (Reverse Performance)
The employer is obliged to pay appropriate compensation to the employee during the non-competition period. Otherwise, the contract may be considered invalid.
In Case of Violation
The Employer may request:
- Penal clause (if any in the contract)
- Magnificent compensation
- Stopping the illegal behavior
Supreme Court 11th HD and 9th HD
9. HD and 11th HD adopt that the non-competition ban must be "proportionate" and that overly restrictive articles may be deemed invalid within the framework of Article 48 of the Constitution (freedom of employment).
Labor and commercial law lawyer is recommended.