The Scope of Prohibition of Competition in Employment Law

The non-competition agreement has become a key component of modern employment contracts, used as an employer's right to protect its business interests. The agreement aims to prevent disclosure of the company's commercial secrets, retain customers, and prevent unfair competition. In Georgia, non-competition agreements are topical to the extent that case law on this issue is very scarce. Accordingly, the scope of the application and, subsequently, the possibility of its implementation, cause a difference of opinions. Based on the analysis of case law, the paper aims to assess normative regulations and the latest trends in employment law, to what extent the Labour Code of Georgia ensures the balance of the interests of the employer and the employee, what challenges the employer in the event of the application of the non-competition clause and how it is possible to overcome them. Moreover, a corresponding recommendation will be presented for each issue, that will facilitate the effective and lawful use of the employer’s right to prohibit competition.

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