Post-Contractual Non-Compete Clauses in Spain

A post-contractual non-compete clause that provides the possibility for the company not to apply it when the contract is terminated or within a few days after its termination, is a valid clause because

i) its enforcement is not being left to the discretion of one of the contracting parties (art. 1256 of the Spanish Civil Code); the company is choosing the option not to apply it in accordance with the contract (furthermore it is reasonable that the company decides to do so, at the time of termination on the basis of the commercial damage that the employee’s further activity could cause to the company at that time) and

ii) it is not abusive because the employee also voluntarily left the company.

Appellate Court of Madrid 25/4/2022.

This news was first published by our Spanish member firm álvarez lentner on August 31, 2022. To read more about this topic, please click here or visit our Spanish member’s pages to see how they can advise and assist you with your employment related questions.