Tripartite working group assessed the need to amend non-competition agreements
A working group led by the Ministry of Economic Affairs and Employment has assessed the provisions of non-competition agreements to establish whether they need to be updated. On the basis of its assessment work, the working group prepared a memorandum, which is now available for commenting. The deadline for comments is 26 September 2019.
The working group analysed the challenges and legal practice associated with non-competition agreements and prohibition of competitive activity, and the extent to which non-competition agreements are used.
The working group consulted employee and employer organisations, attorneys and companies to find out how non-competition agreements and prohibition of competitive activity are applied in practice. The supervisory practices of the supervision authority were also investigated.
To limit the growing use of non-competition clauses, the working group examined various methods for implementing legislative amendments. The effects of key alternatives were also assessed.
The working group’s memorandum will undergo a traditional consultation round until 26 September 2019. The work will continue on the basis of the Government Programme.
Seija Jalkanen, Senior Specialist for Legal Affairs, Ministry of Economic Affairs and Employment, tel. +358 29 504 8952