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Employers have no right to include non-compete clauses into employment contracts without additional compensation as that would limit a person's constitutional right to freely choose occupation, Lithuania's Supreme Court has ruled.
Employers cannot ban employees from working at competing firm, Supreme Court rules
© DELFI / Karolina Pansevič

Lawyers say that employers would often include a clause in their employment contracts, forbidding their employees from doing work for competing companies at the same time.

After the court's ruling, employees will be able to ignore the clause, as long as their additional work does not interfere with their primary job and their employer does not offer any additional compensation.

The Lithuanian Confederation of Employers insists that the law must specify jobs and occupations that allow employees to work for several companies so as to prevent client poaching and leaking commercial secrets.

Employers also say that employees are normally offered compensation for non-compete clauses. However, lawyers say, there have been many cases when employees have been sacked for taking on additional work.

www.lrt.lt
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