Terms of employment contract restrictions

Last updated 23.6.2026

An employment contract is one of the most important documents in the working life. That is why you should read it carefully before signing it and make sure you understand all the terms of the contract as well as what you are agreeing to. If any point raises questions, you should ask for clarification before signing the document. You should also keep a copy of the signed employment contract for your records, as you may need to refer to it later.

An employment contract is not merely a formality, but a document that can have significant implications even after the employment relationship ends. Although the Employment Contracts Act contains many mandatory provisions that protect employees, the employee and employer can also agree on many matters directly between themselves. Employment contracts may therefore contain quite far-reaching obligations, the significance of which is important to understand even as the contract is being drafted.

Pay special attention to these points when you’re drawing up an employment contract

• Ban on competing activities
• Non-competition agreement
• Non-poaching agreement
• Non-recruitment clause
• Non-disclosure agreement
• A contractual penalty has been agreed upon as a consequence of a breach of these terms

See more information: Pay attention to these restrictions in your employment contract