The employment contract can determine the jobs that an employee can not work in his name and for his own account, as well as on behalf of and for the account of another legal or natural person, without the consent of the employer with whom he is employed. (The prohibition in the quoted provision refers to the duration of the contract of employment).
A ban on competition can only be established if there are conditions for the employees to acquire new, especially important technological knowledge, a wide range of business partners, or to get to know important business information and secrets by working with the employer.
However, by an employment contract, an employer and an employee may contract and conditions for the prohibition of competition after the termination of employment (prohibition with extended effect), within a period which can not be longer than two years after the termination of employment, where such a ban on competition can be contracted only if the employer is obliged by an employment contract to pay the employee a fee in the contracted amount.
Prohibition on termination of employment implies that an employee can not engage in jobs determined by an employment contract, without the consent of the employer, for some time after the expiration of the employment relationship, whereby this extended prohibition effect has its price and the employer has the right to expect respect The employer must pay the employee a monetary compensation, the amount of which is contracted and specifically provided for by the employment contract.