Non competition agreement in Italy:

It is the written agreement whereby an employee undertakes not to carry on activities in competition with the employer after the employment relationship.

Article 2125 of the Italian Civil Code stipulates that such agreements may not last for more than three years (five in the case of managers), must be in writing, must state exactly what competitive activities are prohibited and the locality where they are prohibited and, finally, must make provision for compensation in recognition of the fact that the workers’ scope for using their own professional skills is thereby reduced.

In order to assess the legitimacy of any non-competition agreement, it is important to check the adequacy of the worker’s compensation in front of the limitation of his professional possibilities, the object of the non-competition covenant, its duration and the territory.