Troublesome contract clauses in the employment agreement

Camelia Bucioveanu, 18 Mar 2009

Romanian version

Under the provisions of Labor Code in force, the content of the employment contract can include four specific clauses: confidentiality, non-competition, professional development and mobility.

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Confidentiality clause

The non-compete clause can cause problems, especially in times of crisis, when many employees decide to seek for a stable job and completely ignores the provisions arising from the hiring contract.

Therefore, the employee can remain unemployed and still with high amounts to pay to the company. “On the other hand, if the employer discharges a person with whom it is bound to comply with the non-compete clause, the company is obliged to pay a monthly paycheck, although its budget can be severely affected by the crisis,” said Petra Votisky.

Another addendum imposed by employers to the employment contract can be the confidentiality clause as to ban the disclosure of secret information regarding clients, value of pay packages or policies and operation of the company. If the employer is not clearly defining what information is confidential and which not in the contract, the clause may be deemed as unenforceable.

The company should also stipulate the financial compensation it additionally gives to the employee, said Daniela Kovacs. In certain cases, the company can demand the employee to prove that he doesn’t possess any confidential documents or software.

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