Non-Compete Agreements by Country: Enforceability in 36 Jurisdictions
Whether a post-employment non-compete clause is enforceable — and at what cost to the employer — varies more by country than almost any other contract term. This reference compares the primary governing statute for 36 jurisdictions, from the common-law restraint-of-trade doctrine to civil-code limits and statutory bans, with a free, locally-drafted non-compete template for each.
Why non-compete enforceability differs by country
A non-compete restrains a person's right to work, so every legal system tests it against public policy — but the balance struck differs widely. Common-law jurisdictions (UK, Ireland, Singapore, Hong Kong) enforce a clause only so far as it is reasonable in scope, geography and duration. Several civil-law systems require the employer to pay compensation for the restraint to be valid — Germany's HGB §74, France's four cumulative conditions, Italy's art. 2125 c.c. A few jurisdictions void post-employment non-competes almost entirely, such as India under s. 27 of the Contract Act 1872. A clause that is routine in one country can be unenforceable — or expensive — in another, which is why the template differs per jurisdiction.
Governing statute & free template by country
| Country | Primary governing statute | Free non-compete template |
|---|---|---|
| Argentina | Código Civil y Comercial de la Nación (CCyC) Art. 1131; Ley de Contrato de Trabajo 20.744 Art. 88 | Post-Employment Non-Compete Agreement Argentina |
| Australia | Common law doctrine of restraint of trade | Non-Compete Agreement (Australia) |
| Austria | Angestelltengesetz (AngG, BGBl Nr. 292/1921) § 36 iVm ABGB §§ 859–937 | Non-Compete Clause Austria (Konkurrenzklausel) |
| Belgium | Loi du 3 juillet 1978 sur les contrats de travail (art. 65); Arrêté royal du 22 janvier 2014; CCT n° 100 du Conseil national du Travail | Non-Compete Clause Belgium (Clause de Non-Concurrence) |
| Brazil | CC Art. 422; CLT Art. 444 | Non-Compete Agreement Brazil (Acordo de Não Concorrência) |
| Canada | Common law doctrine of restraint of trade (Ontario: Working for Workers Act 2021 / ESA s. 67.2) | Non-Compete Agreement (Canada) |
| Chile | Código Civil Art. 1545; Código del Trabajo Art. 5 | Post-Employment Non-Compete Agreement Chile |
| Colombia | Código Civil (CC) art. 1602; Código Sustantivo del Trabajo (CST) art. 44 | Non-Compete Agreement Colombia (Acuerdo de No Competencia) |
| Denmark | Ansættelsesklausulloven (lov nr. 1565 af 15/12/2015) §§ 5, 8; Funktionærloven (LBK nr. 1002 af 24/08/2017); Lov om forretningshemmeligheder (EU-direktiv 2016/943) | Non-Compete Clause Denmark (Konkurrenceklausul) |
| Finland | Työsopimuslaki (55/2001) 3:5, 3:4; Liikesalaisuuslaki (595/2018); Oikeustoimilaki (228/1929) 36 § | Non-Compete Agreement Finland (Kilpailukieltosopimus) |
| France | Code du travail art. L1121-1; Cass. soc. 10 juillet 2002 n°00-45.135 (4 conditions cumulatives) | Non-Compete Clause France (Clause de Non-Concurrence) |
| Germany | HGB §74 (Wettbewerbsverbot); §74a (Grenzen); §74c (Anrechnung); §75d (Abweichungsverbot); BGB §138 (Sittenwidrigkeit) | Non-Compete Agreement Germany (Wettbewerbsverbot-Vereinbarung) |
| Ghana | Contracts Act 1960 (Act 25) | Non-Compete Agreement (Ghana) |
| Hong Kong | Common law doctrine of restraint of trade | Non-Compete Agreement (Hong Kong) |
| India | Indian Contract Act 1872 s. 27 | Non-Compete Agreement (India) |
| Ireland | Common law doctrine of restraint of trade | Non-Compete Agreement (Ireland) |
| Italy | art. 2125 c.c.; art. 2105 c.c.; art. 1382 c.c.; art. 1419 c.c. | Non-Compete Agreement Italy (Patto di Non Concorrenza) |
| Kenya | Law of Contract Act Cap. 23 | Non-Compete Agreement (Kenya) |
| Malaysia | Contracts Act 1950 s. 28 | Non-Compete Agreement (Malaysia) |
| Mexico | Ley Federal de Protección a la Propiedad Industrial (LFPPI); Código Civil Federal art. 1830 | Non-Compete Agreement Mexico (Acuerdo de No Competencia) |
| Netherlands | Burgerlijk Wetboek Boek 7 art. 7:653; Wijziging WWZ 2025 (motivering bij onbepaalde tijd); BW art. 7:650 en 7:651 (boetebeding) | Non-Compete Clause Netherlands (Non-Concurrentiebeding) |
| New Zealand | Employment Relations Act 2000 | Non-Compete Agreement (New Zealand) |
| Nigeria | Common law doctrine of restraint of trade | Non-Compete Agreement (Nigeria) |
| Norway | Arbeidsmiljøloven (2005) kapittel 14 A §§ 14 A-1, 14 A-2, 14 A-3, 14 A-4 | Non-Compete Clause Norway (Konkurranseklausul) |
| Pakistan | Contract Act 1872 | Non-Compete Agreement (Pakistan) |
| Philippines | Civil Code of the Philippines (RA 386), Art. 1306 | Non-Compete Agreement (Philippines) |
| Poland | Kodeks pracy — ustawa z dnia 26 czerwca 1974 r. (art. 101¹-101⁴) | Non-Compete Agreement Poland (Umowa o Zakazie Konkurencji) |
| Portugal | Código do Trabalho (Lei nº 7/2009) artigo 136.º | Post-Contract Non-Compete Portugal (Pacto de Não Concorrência) |
| Quebec | Act Respecting Labour Standards (CQLR, c. N-1.1) | Non-Compete Agreement (Quebec) |
| Singapore | Common law doctrine of restraint of trade (Man Financial (S) Pte Ltd v Wong Bark Chuan David) | Non-Compete Agreement (Singapore) |
| Spain | Estatuto de los Trabajadores (RDL 2/2015) art. 21.2 | Non-Compete Agreement Spain (Pacto de No Competencia) |
| Sweden | § 38 Avtalslagen (1915:218); Konkurrenslagen (2008:579); 1969 års ramavtal om konkurrensklausuler | Non-Compete Agreement Sweden (Konkurrensförbudsavtal) |
| Switzerland | OR Art. 340 (Konkurrenzverbot Voraussetzungen Schriftform); OR Art. 340a (Beschraenkungen — sachlich oertlich zeitlich); OR Art. 340b (Folgen der Uebertretung — Schadenersatz und Konventionalstrafe); OR Art. 340c (Wegfall bei Arbeitgeberkuendigung); BGE 138 III 67 (Verhaeltnismaessigkeit Konkurrenzverbot) | Non-Compete Agreement Switzerland (Konkurrenzverbot) |
| United Arab Emirates | Federal Decree-Law No. 33 of 2021 (UAE Labour Law), Article 10 | Employee Non-Compete Agreement (UAE) |
| United Kingdom | Common law doctrine of restraint of trade | Non-Compete Agreement (UK) |
| United States | Restatement (Second) of Contracts § 188 | Non-Compete Agreement |
Statutes shown are the primary governing act; the specific requirements are set out on each linked country page. All 36 template links verified live on 2026-06-25.
Frequently asked questions
Are non-compete agreements enforceable in every country?
No. Enforceability ranges from broadly permitted-if-reasonable (most common-law countries) to valid-only-if-the-employer-pays (Germany, France, Italy, Portugal, Belgium) to largely void (India under s. 27 of the Contract Act 1872). This 36-jurisdiction table lists the primary governing rule for each; the linked country page sets out the local limits.
Does the employer have to pay for a non-compete?
In several civil-law countries, yes — a post-employment non-compete is only binding if the employer pays the former employee compensation during the restricted period (for example Germany's HGB §74, requiring at least half of last salary). Common-law countries generally do not require payment but will only enforce a restraint that is reasonable. The country page states which rule applies.
How long can a non-compete last?
Maximum durations are set by statute or case law and vary by country — commonly six months to two years for post-employment restraints, with longer terms struck down as unreasonable. The enforceable period also depends on the role and the legitimate interest protected. Each country template is drafted to the local norm.
Are these non-compete templates free?
Yes. forms-legal.com provides a free, jurisdiction-specific non-compete template for every country in this comparison, downloadable as PDF or Word with no signup.
About this comparison
Each entry maps a jurisdiction to its primary governing statute and to the matching free template on forms-legal.com. The data is curated from our multi-jurisdiction legal document library; the linked country pages carry the full, locally-drafted document and the current statutory detail. Templates are free to download as PDF or Word with no signup. This is reference information, not legal advice.