What Drafting a Non-Compete Clause Means
Drafting a non-compete clause in Georgia is an exercise built on the checklist of Article 60 of the Labour Code: the clause works only when it mirrors each statutory requirement. An employment contract may define the employee's obligation not to use the knowledge and qualification acquired in performing the contract for the benefit of the employer's competitor — and that restriction may operate only for 6 months after the termination of the employment relationship.
It is important to understand that this clause is not a standalone contract and cannot live as a separate document — it is formulated as a term of the employment contract. Drafting it is therefore part of planning the contract's content, requiring a balance of compensation, duration and scope, because a term contrary to law is void.
The Three Conditions the Clause Must Meet
Experience shows three marks of a quality clause: precision, proportionality and documentary consistency. Precision means the clause states exactly what kind of knowledge it covers and who counts as a competitor; proportionality means the restriction does not exceed the statutory term and demands nothing impossible of the employee; consistency means every written term coexists harmoniously with the provisions on pay, leave and termination. Together these three marks make the clause not merely lawful but workable.
First — the duration cap: the restriction cannot exceed 6 months after termination. Second — compensation: during the restriction period the employer must pay the employee remuneration not lower than the amount existing at termination. The contract or addendum should show a concrete amount — an "if we pay" formulation does not satisfy the statute. Third — the circle of persons: imposing the restriction on employees working in education, science or culture is impermissible, so with such persons the clause should not be included at all.
If the requirements are breached, the law gives the employer no comfort: damage caused by violation of this article's requirements is compensated under the procedure established by Georgian legislation. An ineffective clause thus becomes for the employer not merely unenforceable but costly.
At the drafting stage this means a simple three-step checklist: first, whether the employee belongs to the circle on which the restriction is permissible; next, the 6-month term and the precise moment of its start; finally, the compensation amount and the periodicity of payment. Each step should stand in the text as a separate, comprehensible provision, so that in a future dispute no element requires interpretation.