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Are non-compete undertakings by the employee applicable if the employment has been terminated by the employer for (i) personal reasons; or (ii) redundancy?

 As per Turkish Code of Obligations, the worker with the capacity to act may undertake in writing not to compete against the employer in any form else, especially not to open a competing business enterprise on his name, to work in another competing business enterprise or other than these to enter into a relationship of interest with a competing business enterprise after termination of the contract. Condition of prohibition of competition will be valid only if the service relationship provides the worker to acquire information about customer circle or production secrets or business activities done by the employer and using this information is at the capacity to cause a significant loss of the employer. The prohibition of competition may not contain unfair restrictions to compromise worker’s economic future in an appropriate form for time and types of works and term of prohibition may not be more than two years except specific cases and conditions.


The prohibition of competition ends when it is determined that the employer has no real interest in maintaining this prohibition. If the contract is terminated by the employer without a rightful cause or by the worker with a reason attributable to the worker, the prohibition of competition ends.


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