Non-compete clauses

Good news about non-competition agreements: the new law will work for your benefit

Have you signed a non-competition agreement? Many have done so! Non-competition agreements have become much more common in working life regardless of the field. Akava and its affiliate unions have done a great job driving changes to the legislation to make it more advantageous for employees. The changes will become effective stepwise, starting from the beginning of 2022.

1 Why was a reform needed?

Akava and its affiliate unions pursued improvements to the position of employees. Why was the reform necessary?

2 What will change?

What will change, and how do the changes affect you?

3 What should you do?

Everyone’s situation is unique – your Union is there to help you.

1 Why was a reform needed?

Akava and its affiliate unions pursued improvements to the position of employees. Why was the reform necessary?

2 What will change?

What will change, and how do the changes affect you?

3 What should you do?

Everyone’s situation is unique – your Union is there to help you.

This package provides you with information about the legislative changes concerning non-competition agreements.

What good will the legislative reform be for you? What do you need to bear in mind if your employer suggests that you sign a non-competition agreement? What should you check if you already have made such an agreement? Akava and its affiliate unions will provide answers to these questions.

Start here

Terminology

The Constitution of Finland guarantees every individual the right to carry out any lawful business or profession. It is possible for an employee and employer to restrict this right by agreeing on a prohibition of competition. The prohibition of competition will restrict the employee’s right to be engaged in competing or rival work activities after the employment relationship ends.

The parties agree on a prohibition of competition either by drawing up a separate non-competition agreement or by including a non-competition clause in the employment contract. The parties shall also determine the duration of the restrictive period binding the employee. The restrictive period begins when the employment relationship ends, and the employee is bound by the prohibition of competition until the end of the said period.