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Non-Compete Enforcement/Defense

Is a non-compete valid if I was fired?

Yes, the reason for termination usually doesn't affect the validity of the non-compete, provided the employer continues to pay the agreed compensation during the restriction period.

Can the court cancel the non-compete clause?

Yes, if the court finds the restriction unreasonable (e.g., too long, too broad territory) or uncompensated, it will declare the clause void and unenforceable.

Who pays the legal fees?

Typically, the losing party is ordered to pay the court fees and reasonable attorney fees of the winning party.

Can I work in a different role for a competitor?

It depends on the wording. A well-drafted NCA only prohibits roles where you would use specific trade secrets. A total ban on employment is often unenforceable.

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A Non-Compete Agreement (NCA) is one of the most controversial clauses in an employment contract, often becoming the subject of heated litigation. This service covers both sides: the employer, wishing to protect their trade secrets and client base from an unscrupulous former employee (Enforcement), and the employee, wishing to protect themselves from unfair restrictions and penalties (Defense). Court practice in Georgia regarding this issue is complex; judges evaluate whether the restriction is reasonable and whether appropriate compensation has been paid.

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Legal.ge offers qualified legal services for non-compete disputes. The service includes:

  • For Employers (Enforcement): Gathering evidence of breach (e.g., client poaching), filing a lawsuit claiming contractual penalties and damages, and requesting interim measures (injunctions) to stop competitive activities.
  • For Employees (Defense): Demanding the invalidation of the agreement (if conditions violate the law), defending against unsubstantiated monetary claims, and negotiating with the former employer to lift restrictions.
  • Contract Audit: Assessing risks before litigation starts — how strong a party's position is regarding the requirements of the Labor Code.

Disputes often involve sales managers, IT specialists, and top managers. For example, a company sues a former director who opened a competing business and took key staff. The company demands a 50,000 GEL fine. The director needs a lawyer to prove that the restriction in the contract was unreasonably broad (e.g., covering the whole of Georgia) or the compensation was inadequate, rendering the clause void.

According to the Labor Code of Georgia, a non-compete restriction is valid only if it is in writing, reasonable in duration (max 6 months) and territory, and the employer paid compensation during the restriction period. If any condition is violated, the court will not satisfy the employer's claim. This creates a strong defense mechanism for the employee but also requires employers to have legally sound contracts.

The process begins with a situational analysis. If you are an employer, the lawyer will try to immediately obtain a court injunction to stop the damage. If you are an employee, the lawyer will prepare a defense to rebut the penalty claim. Cases often end in a settlement.

On Legal.ge, you will find lawyers experienced in NCA disputes on both sides. Our specialists will help you protect your business or your career.

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