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Bill 4803/24 proposes changes to the Consolidation of Labor Laws (CLT) with the aim of regulating the non-competition clause after the termination of the employment contract.
This clause represents a commitment between the company and the employee, whereby the employee agrees not to work in competing businesses for a specific period of time after the end of the employment contract. This is a common practice in roles that involve access to strategic information, confidential data or trade secrets.
According to the text of the bill, for the non-competition clause to be legally valid, certain requirements must be met. It is essential to include a specific justification in the contract, clearly specify the duration of the restriction and the geographic area affected, and define the amount of compensation that the former employee will receive while he or she is prevented from working for the competition.
The bill also provides for the possibility that the parties involved may choose not to include this clause in the contract. If this occurs, the employee must be aware of and agree to possible reductions or even suspension of remuneration during the period in which the non-competition clause would normally apply, which is often called “quarantine”.
According to Congressman Jonas Donizette (PSB-SP), author of the proposal, the intention is to incorporate into the text of the labor legislation understandings that are already consolidated in doctrine and jurisprudence. The proposal seeks to guarantee legal certainty for employers and employees, ensuring that freedom of work is not excessively restricted. The Bill will be analyzed conclusively by the Labor and Constitution and Justice and Citizenship Committees (CCJ). To come into force, the proposal still needs to be approved by both the Chamber of Deputies and the Senate.
The Labor Law team at Simões Ribeiro Lawyers remains attentive to these updates and is available to clarify any doubts on the subject. |
