5 April 2018
Prospects for non-compete and non-solicitation agreements

Anatolii Rybachok, lawyer of Lavrynovych & Partners Law Firm, made a comment for “Legal Practice” on perspectives and consequences of the implementation of non-compete and non-solicitation agreements in Ukraine’s current labor legislation.

“It should be understood that the provision on non-compete agreements in legislation will contradict the current Constitution of Ukraine, which guarantees every citizen the right to earn a living by work of his/her choice (Article 43). Practically similar provision is included to the draft of the new Labor Code of Ukraine (Article 20). This means that such a condition can not be applied in practice and will violate employee’s rights.
Meanwhile, the provision on non-solicitation in the new Labor Code can significantly increase the responsibility of an unscrupulous employee. On one hand, it will protect the interests of employers more, while on the other hand, it will decrease the competition between companies in the market. It is important to remember that the current legislation of Ukraine and judicial practice already imply the responsibility of such an employee on the basis of general provisions on compensation.
To sum up, it should be noted that our legislation is not ready for the implementation of any of these two institutions. However, their implementation would significantly improve the rules of doing business in Ukraine and would create the legal framework for protecting the rights of employers against their unscrupulous employees. “