A non-competition agreement, also known as a non-compete clause, is a legal agreement between an employer and an employee that restricts the employee from engaging in activities that compete with the employer`s business for a certain period of time after the employee leaves the company.

In Finland, non-competition agreements are governed by the Employment Contracts Act, and are generally enforceable if they meet certain requirements. The agreement must be in writing, and must include the scope and duration of the non-competition obligation, as well as the compensation or other benefits that the employee will receive in exchange for agreeing to the restriction.

The scope of the non-competition obligation must also be reasonable, taking into account the nature of the employer`s business and the employee`s job duties. It cannot be so broad as to prevent the employee from earning a living or pursuing their chosen profession after leaving the employer.

The duration of the non-competition obligation is also limited by law. In Finland, non-competition clauses are generally enforceable for a maximum of six months after the employment relationship has ended. If the employer wishes to extend the restriction beyond this period, they must compensate the employee for the entire duration of the restriction.

It is important for both employers and employees to understand the implications of non-competition agreements in Finland. For employers, it is important to ensure that the agreement is drafted in accordance with the requirements of the Employment Contracts Act, and that the scope and duration of the restriction are reasonable. Failure to meet these requirements can render the agreement unenforceable.

For employees, it is important to understand the implications of the non-competition obligation before signing the agreement. They should carefully review the terms of the agreement, and seek legal advice if necessary, to ensure that they are not agreeing to restrictions that are overly broad or unreasonable.

In conclusion, non-competition agreements are a useful tool for employers in Finland, but they must be drafted carefully to be enforceable. Employees should also be aware of the implications of these agreements, and ensure that they are not agreeing to restrictions that are unfair or unreasonable.