Why was a reform needed?

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

Major changes will take place in the legislation governing non-competition agreements. The legislative changes are the result of several years’ work by Akava and its affiliate unions. Let’s have a closer look at why this work started in the first place and who will benefit from the amendments.

Whom does the reform of law concern?

This question is easy to answer: most likely it will concern you yourself. A large portion of employees in the private sector are currently subject to a non-competition agreement.

Agreements regarding the post-employment time are being made in practically all fields, and they are by no means limited to the level of top management. Agreements are being drawn up across all salary categories and positions, from museum work to banking and from assistants to CEO’s. In many workplaces, a separate non-competition agreement or a non-competition clause as part of the employment contract have become standard practice. This should not be the case: according to the law, a prohibition of competition always requires particularly weighty grounds.

Why should the use of non-competition agreements be harnessed?

The increasing use of non-competition agreements has weakened employees’ possibilities to move between jobs. Here are some examples of situations in which a non-competition agreement might be disadvantageous for you.

Would you like to change to a new job within the same field?

The non-competition agreement ties you to your current job. It may delay you from starting at a new job. How many employers are willing to wait for a new employee to start if the individual is bound by a six-month restrictive period?

Would you like to negotiate better terms of employment for yourself?

A non-competition agreement is not an asset in negotiations. It may slow down your career advancement and salary development.

Are you interested in receiving a compensation for the restrictive period?

The prohibition of competition also has a financial impact. The restrictive period will cut down your earnings. In the long run, the non-competition agreement may slow down your salary development.

This legislative reform signifies positive news for employees. The amendments to the law will improve the employees’ position and reduce the disadvantages caused by non-competition agreements.

Proceed to the next section to find out what changes there will be in the law.

Proceed

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