LLMD

Labour Law (MD)

Labour Law of the Republic of Moldova


In force since 2022-08-26

Art.

53 .1

Non-compete clause as a condition of contract

(1) The parties may negotiate a non-competition clause whereby the employee is obliged, after termination of the individual employment contract, not to perform, for his own benefit or for the benefit of a third party, an activity which is in competition with the activity performed for his employer, for the period negotiated by the parties, but not more than 1 year. During this period, the employer pays the employee a monthly allowance, the amount of which will be negotiated between the employee and the employer, but which will not be less than 50% of the employee's average monthly salary.


(2) A non-competition clause which prohibits the employee from pursuing his profession in its entirety (according to his educational qualifications) shall be deemed invalid. The non-competition clause must expressly state the geographical area of the administrative-territorial units to which it applies, the activities for which it is valid, the period for which it takes effect, the amount of the monthly non-competition allowance, the time limits and the method of payment.


(3) For breach of the non-competition clause, the employee shall return the compensation received and recover the damage caused to the employer.


(4) Unless otherwise provided by the parties in the non-competition condition, the employer may unilaterally terminate the non-competition condition subject to notice and payment of three months' allowance. The notice of termination of the condition shall have effect only for the future.


(5) Unless otherwise stipulated by the parties in the non-competition condition, the employee may terminate the non-competition condition, subject to notice in writing, if the employer delays payment of benefits.


(6) This Article shall not affect the non-competition obligation provisions laid down in the Civil Code for the administrator of a legal entity.