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Labor, 09/07/17

Unfair competition and full work dedication on the part of the worker.


Unfair competition and full work dedication on the part of the employee

We analyze the possibilities of these agreements, as well as the limits to be taken into account in the implementation of these agreements to provide the company with reciprocal guarantees in the relationship with the workers.

With regard to the matter we have detailed, it is necessary to take into account what the regulations establish in this respect, specifically, the Workers' Statute, which regulates in its article 21 the non-competition and full work dedication agreements.

The literal wording of the article establishes the terms under which the aforementioned agreements can be voluntarily subscribed, which can be made both at the initial moment of signing the employment contract, as subsequently, and for which the company always requires express economic compensation, as consideration for the exclusive dedication of the worker and not being able to dedicate himself to any other activity even once the employment relationship has ended.

The case law related to this matter establishes that in the field of unfair competition there are various behaviors of the worker that will be fundamental notes to appreciate that his conduct is included in a case of unfair competition, such as:

  1. The existence of an economic activity on the part of the worker in satisfaction of his own interest and in competition with that of the company because both are developed within the same commercial sphere.
  2. Using the experience and professional development acquired in the company for personal benefit.
  3. Use that may diminish or harm the interests of said company.
  4. Performing work of the same activity in another company outside of working hours or during vacation periods.

All these assumptions, among others, are examples of unfair competition, although most admit nuances depending on the case, and the need for conclusive proof to be able to defend the origin of competition or unfair competition.

Finally, two aspects to consider regarding this matter are the possibility for the worker to terminate this type of agreement, and the situation of non-compliance by the worker, in which the reimbursement to the employer of the amounts unduly received will be required.

Conclusion:

In our legal system, and more specifically in the Workers' Statute, there is the possibility of entering into full-time dedication and unfair competition agreements, which are voluntary for the employee and involve agreeing to appropriate financial compensation according to the terms established in the agreement. The precise wording of these agreements and the ability of the parties to prove the facts will be the two most decisive factors for their validity.

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