A company employed an operations manager who, within the framework of his employment agreement, signed a non-competition obligation. The agreement stated that when determining the salary, such obligation was considered, and the employee was also compensated for his non-compete obligation. The employee resigned, and the company filed a claim for breach of the non-competition obligation.
The Labor Court held that provision of special compensation is a criterion that must be considered when examining the limitation of employment. The company did not prove that the employee was given special compensation for the obligation of non-competition which justifies limiting his occupation. It is not sufficient to state that the employee was given special compensation for restricting his occupation, but one need prove the amount of the paid compensation and that this is an appropriate compensation for the restriction of the occupation.