Non-compete agreement

A non-compete agreement is a written undertaking by the employee to refrain from competing activities after the employment ends. Its validity under Turkish law requires that the employee had access to the customer base, production secrets or the employer's business information, and that use of this knowledge could cause the employer significant harm.

The restriction must remain within reasonable limits as to territory, duration and scope. Its duration may exceed the statutory ceiling only in special circumstances. Excessive restraints may be narrowed by the court, and prohibitions that unfairly endanger the employee's economic future are invalid.

Upon breach, the employer may claim damages and any agreed penalty. Unlike the duty of loyalty during employment, the covenant governs the post-contractual period, and it lapses as a rule where the employer terminates the contract without justification.