The non-compete clause, being a restrictive covenant which is
usually included in
employment contracts, is not regulated by Maltese Law. Hence,
the enforceability or otherwise shall be determined through
judicial proceedings before the Maltese Courts.
Recently, the Court of Appeal in Malta in Cutrico Services Ltd
v. Josef Penza shed some light on the 'non-compete' clause
or, in simpler terms, the clause prohibiting ex-employees from
soliciting, interfering or endeavouring to entice a customer away
from the employee's ex-employer's business. A
clause/restrictive covenant which is debatable for its
enforceability or rather, lack of, before the relevant courts.
According to Maltese case-law1, for a
'non-compete' clause to be upheld it must:
