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Analysing Ethics and Legal Enforceability in Employee Noncompete Agreements in EU Legislation

Abstract

Noncompete agreements are recently being used in a range of businesses. From engineering firms to companies and businesses of all sorts are pushing new hires to sign noncompete agreements that legally restrict them from working for other potential competitors. The proposed paper would attempt to argue that although putting employment restrictions on an executive or entrepreneur, who is likely to know sensitive trade secrets, from competing against a former employer is probably necessary, putting ordinary employees under such burden may restrict their employability if they leave their employer. The argument would take as a basis the EU legislation in the field, taking also into account that noncompete agreements are the most stringent legal barrier that restricts an employee’s right to practice his or her profession. The analysis would include also the legal standing of the use of alternative agreements, namely confidentiality agreements or nonsolicitation agreements, with a view to present a comparative analysis. The paper would strive to answer numerous questions in light of the recent conditions set forth by the pandemic, including among others: What is the purpose of a noncompete agreement? Is it ethical for a company to require its employees to sign a noncompete agreement as a condition of employment? Under what conditions can be considered to be acceptable for an employer to ask an employee to sign a noncompete agreement? What are alternative ways to manage employee behaviour, so they do not harm their former employer after they quit?

Author

Portrait image of Enik  Pogace
Enik Pogace
Head of Employee Relations Division , Bank of Albania, Albania

Enik Pogace serves as the Head of the Employee Relations Division at the Bank of Albania. Formerly, he was a legal expert at the Bank, tackling an extensive array of legal matters related to banking, payment systems, and the prevention of money laundering and terrorist financing. His career commenced with international organizations such as the United Nations Development Programme (UNDP) and the International Organization for Migration (IOM), followed by legal work at the Ministry of Justice. Prior to joining the Bank of Albania, he contributed to a European Commission program on justice reform in Albania. He studied at Georgetown University, University of Freiburg, and Marmara University, and has conducted postgraduate legal research at the University of London. His recent research has been concentrated on harmonizing banking legislation with the European Union acquis, particularly concerning employment and employee rights.

Company

Bank of Albania logo

Bank of Albania

The Bank of Albania, serves as the central bank of the Republic of Albania. Located in the capital city of Tirana, it operates under a clear mandate to maintain price stability, regulate the banking sector, and issue the national currency. As the chief monetary authority, the Bank of Albania formulates and implements monetary policy, supervises financial institutions, and ensures the sound functioning of payment systems. By promoting financial stability, the Bank plays a pivotal role in the country's economic framework.

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