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The Hungarian Supreme Court Expands the Scope of Non-compete Agreements
Precedential Decision by Judiciary or Regulatory Agency
Author: Zoltán Csernus, Attorney-at-Law – VJT & Partners Law Firm
Hungarian labor law allows employers to enter into non-compete agreements barring employees from working for a competitor after their employment ends. Employer may sue employees for damages and penalties provided for in the non-compete agreement if it is breached. The Hungarian Supreme Court has ruled that if the new employer was not a competitor when it became the new employer but later starts a new business activity that competes with the previous employer, the employee is liable for breach of the non-compete agreement if they continue employment with the new employer.