Littler Global Guide - Hungary - Q1 2024

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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.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.