COURT OF CASSATION: REQUIREMENTS OF THE CONSIDERATION FOR A VALID NON-COMPETITION AGREEMENT
The Court of Cassation, Labor Section, with judgment No. 9256 of 8 April 2025, stated that, for the non-competition agreement to be valid, with specific reference to the payment clause, it is necessary that the payment itself:
- meets the general requirements of determinacy or determinability pursuant to Article 1346 of the Italian Civil Code;
- must be reasonable – i.e., not merely symbolic or manifestly unfair or disproportionate – pursuant to Article 2125 of the Italian Civil Code according to an “ex ante” assessment based solely on the scope of the “non-do” obligation covered by the clauses of the non-competition agreement, and not in relation to what may actually happen.
This applies regardless of whether the payment is granted on a monthly basis, at the end of the employment relationship or after its termination.
These conclusions are based on the Court's reasoning that the non-competition agreement and the employment relationship are independent agreements in terms of causality and, therefore, the payment due under the non-competition agreement must be assessed
