The main purpose of master thesis is to enable detailed review of currently applicable Slovenian Labour legislation, which governs non-competition with additional support of extensive case law. It shall provide instructions to employers, how to effectively use non-competition clause when entering into employment relationship with workers in order to sufficiently protect their special technical, industrial or business knowledge and business connections and equally it will provide detailed information to employees in which cases such non-competition clause can be agreed and which obligations and rights it brings. For the further purpose of this master thesis and in order to evaluate how the non-competition clause is currently used in Slovenia, short survey was carried out among Slovenian employers in various areas of the economy and public sector.
Currently applicable legislation allows employers to reach an agreement with their employees, by which the employee accepts to refrain from all actions which (might) present competition to employee after the employment relationship has ended. To be precise he is not allowed to use any of special knowledge or business relations which he acquired at work or in relation with his work during his employment period at his former employer.
However, it would not be acceptable to protect only legitimate interests of the employer. Therefore, Employment Relationship Act sets out certain restrictions. The employer is obliged to pay compensation fee to the former employee for refraining from before mentioned competitive activities with addition such commitment made by the former employee is legally limited to a certain period of time. Moreover, it is not allowed to protect common knowledge and connections which could be acquired at any other employer. However, if the non-competition clause is breached, certain sanctions occur, even in form of contractual penalty fee.