Non Compete Agreements In Georgia

Since 2011, Georgian law has contained a rule of separability known as the “Blue Pencil” rule. Under the blue pencil severability rule, a judge can amend a restrictive pact that is too broad to make it enforceable instead of annuling the entire non-competition clause. Therefore, when a worker challenges a broad non-competition clause, he or she may nevertheless be subject to a less restrictive version. The last area to consider when concluding a non-competition clause is the new confidentiality rules. Previously, Georgian law limited the duration of confidentiality rules. If there were no time limit set by the provisions or if the confidentiality period was too long, the courts would not apply the provision. Under the new law, confidentiality rules remain valid as long as the information covered by the agreement remains a trade secret or must remain confidential for the success of the business. Georgian law generally stipulates that competition bans are applicable as long as the following requirements are met: after a huge reform, including new laws and a comprehensive amendment of the State Constitution, Georgia has moved from a strongly disapproved State with competition bans to a State that strongly supports them. Experienced business owners should ensure that they take full advantage of this change in the law and employees should have their employment contracts checked by a lawyer to see if they are at risk of losing their livelihoods for years after the end of their employment relationship. The Georgian Law on Non-Competition also provides for the acquisition of former customers. Court decisions have established that it is possible to prevent former employees from recruiting customers or other employees as long as the former employee has had commercial interactions with these individuals. It is not possible to deter former employees from recruiting clients with whom they did not have a business relationship before. Competition bans have become a source of much controversy in recent years.

Some consider that competition bans are a violation of a worker`s ability to find employment on the free market. However, for the employer, competition agreements may be essential to protect the employer`s confidential information. .