Non-Competition Agreements In Different Types Of Contracts

In a limited liability company, it is in the interest of the company and its shareholders that the shareholders working for the company do not engage in competing activities with the company. It is also in the interest of the company that its employees do not engage in activities that compete with the company's business. On the other hand, the right to earn a living through freely chosen work is one of the constitutionally protected rights, which can only be restricted by legislation. This imposes certain limitations to the extent to which non-competition agreements can be freely negotiated.

The Limited Liability Companies Act itself does not contain provisions that prohibit shareholders of the company from engaging in competing activities with the company. The Employment Contracts Act includes provisions regarding non-competition, but according to the law, incorporating these into an employment contract requires a particularly weighty reason. It is common for