Troublesome contract clauses in the employment agreement

Another detail that employers could let slip is the indemnity to be granted to the employee, whom, although left the company, remains on the sideline waiting for the time frame defined in the contract to pass.

If this amount is not stipulated, or if the employer refuses to pay compensation after the termination of the contract, it is very likely to result in a legal action which could end in a court decision against the employer. “This compensation is negotiable and should be higher than half of the gross salaries received by the employee over the past six months”, said Daniela Kovacs, consultant with Advice.

Nevertheless, Ovidiu Vilceanu says there are very few companies that actually insert these clauses in the employment contracts. “In general, companies want to intimidate the employee and to keep him alert. Very few companies stipulate the non-compete clause, because afterwards they would be bound to pay the financial compensations after the termination of the contract, which could be translated into a loss for the companies”, Vilceanu commented.

Moreover, this clause started to lose ground for a while now and to be less used due to the provisions set forth in the Labor Code – it is applied to employees who benefited of training courses, said Bogdan Toth, managing partner of HR4U recruitment firm.