Arbeitsrecht. Weltweit.

Autor COBALT Lithuania


Recent court cases bring Lithuanian non-compete agreements into question

Although non-competition agreements between employer and employee are not prohibited in Lithuania, there is a gap in the regulation of covenant not to compete. Lithuanian Labour Code and Civil Code do not specifically govern noncompete agreements, but there is a possibility to apply the Civil Code by analogy. Therefore, the case law and especially judgements of the Supreme Court are of crucial importance while interpreting non-compete agreements. Up to now the duty to pay non-compete compensation to an employee was set forth by the judgements of Lithuanian Supreme Court only in such cases when his/her possibility to compete was limited after the termination of employment relationships. However, in two recent cases the court clearly established that compensation must be paid not only for non-competition after the termination of employment but also during the employment. Ganzen Artikel lesen