{"id":40283,"date":"2022-06-04T12:08:00","date_gmt":"2022-06-04T10:08:00","guid":{"rendered":"https:\/\/zuniclaw.com\/everything-you-need-to-know-about-the-non-compete-clause\/"},"modified":"2025-04-24T11:27:21","modified_gmt":"2025-04-24T09:27:21","slug":"non-compete-clause","status":"publish","type":"post","link":"https:\/\/zuniclaw.com\/en\/non-compete-clause\/","title":{"rendered":"Non-Compete Clause in Serbia: What You Need to Know"},"content":{"rendered":"\t\t
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Our extensive experience has shown that the non-compete clause has become one of the most important topics and a “stumbling block” during numerous negotiations. That should not come as a surprise, as the absence of an effective non-compete clause can cause a loss of clients or an unexpected drain of manpower for an employer.<\/p>

On the other hand, it is understandable that an employee wants the freedom to be able to choose the best career path, especially in the case of high-ranking employees who can easily find jobs elsewhere (including the competition).<\/p>

In addition to the employer-employee relationship, the non-compete clause has become particularly important in relations between members of a limited liability company. The massive increase in the number of business entities in the IT sector (both entrepreneurs and limited liability companies), followed by a frequent situation where the same person performs several functions, leads to violation of the non-compete clause prescribed by the Company Law<\/a>.<\/p>

Bearing in mind that we advise companies of all sizes on the subject of protection against unfair competition<\/a> daily, we analyzed the non-compete clause in labor relations and commercial context, with a special focus on the IT sector.<\/p>

However, the following blog does not deal with the issues of the prohibition of competition in the legally binding contractual relationship, ie, rules applicable to entrepreneurs (the so-called “contractors”) who cooperate with a particular firm based on a contract law agreement (the so-called Agreement on Business and Technical Cooperation).<\/strong><\/p><\/div><\/section>

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Non-compete Clause in the Employment Agreement<\/a><\/h2><\/div>

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An Employment agreement may provide for a non-compete clause<\/a> that stipulates that an employee, without the consent of the employer, cannot perform certain functions in his own name and on his own behalf, nor in the name and on behalf of another natural or legal person. The non-compete clause can be agreed during the employment period (which can limit developers to work as freelancers after working hours), as well as with the effect after the termination of the employment contract.<\/p>

The non-compete clause may be provided after the moment of the conclusion of the Employment contract, ie, during the employment relationship, by an Addendum to the Employment contract. For a director who works without an employment contract, the non-compete clause may be provided by a contract on the regulation of mutual rights, obligations, and responsibilities. In this case, the same rules apply as in the employment contract.<\/p><\/div><\/section>

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Example: You are employed as a back-end developer at an IT firm. During the employment relationship with your employer, as well as for a certain period of time after the termination of employment (if provided), without the consent of your employer, you are not allowed to perform particular tasks which are specifically agreed upon in the Non -Compete Clause with your employer, neither in your own company, nor while working for another employer.<\/em><\/div>
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The non-compete clause<\/a> may be provided if there are conditions for an employee to acquire:<\/p>