Post Employment Restrictive Covenants

Among all post employment restrictive covenants, the only one protected by Brazilian laws is confidentiality: it is a criminal offense to disclose trade secrets and other relevant commercial information obtained as a result of the performance of the services. As a consequence, it has become a market practice to include restrictive covenants - such as non-compete, non-solicitation, non-poaching and additional non-disclosure obligations - in employment contracts (especially for high level employees). Such practice aims at ensuring the adequate protection of sensitive information and legitimate business interests of the company by prohibiting former employees from working to competitors and soliciting employees, customers and suppliers.