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.
Where the Clause Sits — the Contract's Essential Terms
Under the Code, the essential terms of an employment contract include, among others, remuneration and the manner of its payment, the procedure for terminating the employment relationship, and the other terms that must be essentially defined in the contract. The non-compete clause fits into exactly this frame: it is drafted as a term of the contract or its addendum, with the compensation amount and payment schedule. Where the internal labour rules form part of the contract, any amendment of them must be communicated to the employee within 14 calendar days of its introduction.
Moonlighting and Competitors — Planning During Employment
The restriction concerns the post-termination period, but during employment its analogue exists too: an employee's right to work in more than one position may be restricted by the employment contract only where the person for whom the secondary work is to be performed is the employer's competitor. This norm determines how the issue of an employee's second job should be written into internal policy.
The clause's connection with the rest of the contract deserves separate attention: the non-compete provision must not contradict the provisions on remuneration and on termination, since internal contradictions weaken the employer's position both in the conciliation procedure and in court. Consistency is as much an element of quality as compliance with the statute itself.
What Does Not Apply in Georgia
The widespread belief that non-compete clauses are simply void in Georgia is outdated: the law admits them under precise conditions. Conversely, the American-style multi-year, worldwide restriction formats cannot satisfy the Georgian variant — a Georgian clause must be short-term, compensated and confined to a defined circle of persons. Copying foreign templates risks the entire clause being declared unlawful.
Frequently Asked Questions
Below we answer the questions most frequently asked about drafting.
Can the restriction last longer than 6 months?
No. The law caps it at 6 months, and exceeding that cap makes the clause ineffective — a longer clause will remain unenforceable.
How large must the compensation be?
Not lower than the remuneration existing at the termination of the employment relationship, and the payments must continue throughout the restriction period.
In which document is the clause included?
In the employment contract or its addendum — as a standalone agreement it escapes the lawful form, because it is formulated precisely as a term of the contract.
Can such a clause be imposed on an education-sector employee?
No — the restriction is impermissible for employees in education, science or culture, so the clause is not included in such contracts.
How We Help on Legal.ge
The Legal.ge legal team builds the non-compete clause on all three statutory requirements: we draft the duration, the compensation amount and payment schedule, assess the circle of persons, and connect the clause to the contract's remaining terms. Contact us — a properly drafted clause minimises the risk of a dispute.