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ARTICLE · 06 AUGUST 2024

Post-Termination Non-Compete Clauses In Employment Contracts

Ganado Advocates
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On April 23, the US' Federal Trade Commission (US FTC) published the final version of a rather controversial new rule, which will introduce a nationwide ban on the use of post-termination non-competition clauses...

MaltaEmployment and HR
Nina Fauser
Nina Fauser
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On April 23, the US' Federal Trade Commission (US FTC) published the final version of a rather controversial new rule, which will introduce a nationwide ban on the use of post-termination non-competition clauses (NCCs) by employers. The final rule will become effective after the lapse of 120 days from its publication in the Federal Register.

NCCs are not only prevalent in the US, but are also quite widespread in the EU. Will the EU follow the US lead in proposing some form of EU-wide regulation restricting the use of post-termination NCCs in employment relationships? And if so, should post-termination NCCs in employment contracts be completely banned as proposed by the US FTC, or simply limited to reduce their anti-competitive and restrictive effects?

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