If you are a Hungarian speaker who is seeking employment in Hungary, you may have come across the term “non-compete agreement” (vagy az eredeti magyar kifejezése: “nem versenyeztetési megállapodás”). A non-compete agreement is a legal document that restricts an employee from working for a competing company or starting their own business in the same field for a certain period after leaving their current job.
A non-compete agreement is usually included as part of an employment contract, and it aims to protect the interests of the employer by preventing the employee from sharing confidential information or trade secrets with a competing company. It also ensures that the employee does not use their knowledge and skills to create a competing business in the same industry.
In Hungary, non-compete agreements are regulated by the Labor Code (Munka Törvénykönyve) and must meet certain criteria to be enforceable. According to the law, a non-compete agreement must be in writing, state the reasons for its implementation, and specify the duration and scope of the restrictions. The agreement must also provide the employee with appropriate compensation for the restrictions.
Non-compete agreements in Hungary are typically valid for up to two years after the end of the employment relationship. The scope of the restrictions must be reasonable and limited to the geographic area where the employer operates and the activities that the employee was engaged in during their employment.
It is important to note that non-compete agreements can limit an individual`s ability to find suitable employment after leaving their current job. Therefore, it is crucial to review the terms and conditions carefully before signing the agreement.
In summary, non-compete agreements are legal documents that restrict an employee from working for a competing company or starting their own business in the same field for a certain period after leaving their current job. In Hungary, these agreements are regulated by the Labor Code and must meet certain criteria to be enforceable. As with any legal document, it is important to carefully review the terms and conditions before signing a non-compete agreement.