Is this provision compliant with article 38 of labour code

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Reference no: EM133671825

Assignment:

Example of non-compete provision

PROVISION IN EMPLOYMENT AGREEMENT

1. The Employee shall not compete with any business of the Employer and the Group of the Employer during validity of the Employment Contract and for 3 years from the date of termination of the Employment Contract.

2. After termination of the Employment Contract, the Employer shall pay to the Employee non-compete compensation equal to 20% of the Employee's nominal monthly salary.

3. At any time, the Employer has a right to unilaterally withdraw non-compete obligation of the Employee and stop paying the Employee non-compete compensation.

QUESTIONS

A. Would you as an employee agree to sign Employment Contract with such non-compete provision? Why?

B. Is this provision compliant with Article 38 of the Labour Code?

Reference no: EM133671825

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