What a Non-Compete Clause Dispute Is
A dispute over a non-compete clause is governed by Article 60 of the Georgian Labour Code, and its examination always turns on the same question: does the clause satisfy the statute's requirements. An employment contract may impose on the employee the obligation not to use the knowledge and qualification acquired in performing the contract for the benefit of the employer's competitor. This restriction may apply only for 6 months after the termination of the employment relationship, and only on condition that during its operation the employer pays the employee remuneration not lower than the amount existing at the moment of termination.
For both sides of the dispute this means that victory is not a question of how the court feels about business competition — it is a question of whether the clause passes the statute's three barriers: duration, compensation and the circle of persons. Breaching even one of these barriers renders the clause unenforceable, while damage caused by breach of the statute's requirements is compensated under the procedure established by Georgian legislation.
The Three Statutory Barriers Examined in the Dispute
The first barrier is duration: the restriction cannot last longer than 6 months, and exceeding that cap is the principal ground for declaring the clause unlawful. The second barrier is compensation: if the employer does not pay the employee, throughout the restriction period, remuneration not lower than the amount at termination, the clause loses its force — an uncompensated restriction will not protect the employer in court. The third barrier is the circle of persons: the restriction cannot be imposed on employees working in the fields of education, science or culture — such a clause is impermissible from the outset.
It is on these three barriers that the substance of the dispute is built: the employee seeks a declaration that the clause is unenforceable, while the employer seeks its enforcement and, in case of breach, compensation of the damage. Both claims are examined within the same legal frame, and the winning party is the one whose evidence maps precisely onto the three barriers.