What is a patto di non concorrenza?
A patto di non concorrenza is a non-compete agreement between an Italian employer and an employee that limits the employee’s activity after the employment ends. It is governed by article 2125 of the Civil Code, which makes it void unless it meets strict conditions.
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Schedule a strategy callThe legal conditions
Under article 2125, the agreement is void unless:
- it is in writing;
- the employee receives payment for it, known as the corrispettivo; and
- the restriction is limited in subject matter, time and place.
It can last no more than five years for executives (dirigenti) and three years for other employees. If a longer period is agreed, it is cut back to the legal maximum rather than voided.
Payment and scope in practice
The Civil Code does not set an amount. Italian case law, including the Court of Cassation’s order No. 5540 of 2021, checks two things: that the payment is determined or determinable when the agreement is made, and that it is not symbolic or manifestly disproportionate to the restriction. An agreement that fails either test is void, and the employee is free to compete.
The restriction must also leave the employee able to earn a living in line with their skills. A clause that bans any work in their sector across the whole of Italy, or across several countries, carries a high risk of being found void. Agreements usually define the competing activities, the territory and the duration precisely, and set what the employee must pay back if they break it.
Non-compete agreements when you hire through an EOR
With TopSource as your Employer of Record in Italy, we agree the scope you need, put the non-compete in writing in the employment contract, and set a payment and limits that can stand up in an Italian court, so the agreement protects your business without being void from the start.
Frequently asked questions
How long can a non-compete last in Italy?
Up to five years for executives and three years for other employees. A longer agreed period is reduced to these limits.
Does an Italian non-compete have to be paid?
Yes. Article 2125 of the Civil Code makes the agreement void without payment. The amount must be determined or determinable and proportionate to the restriction.
What makes a patto di non concorrenza void?
Missing written form, no payment or a symbolic one, or limits on activity, time or place that are missing or so wide that the employee cannot work in their field.
Related terms in Italy
- Comunicazione Obbligatoria (Italy)
- Libro Unico del Lavoro (Italy)
- Smart Working Agreement (Italy)
- ROL and Ex-Festività Permits (Italy)
- Employee Categories (Italy)
- Mandatory Disability Hiring Quota (Italy)
- Cassa Integrazione (Italy)
- Decreto Flussi and Nulla Osta (Italy)
- Welfare Aziendale (Italy)
- F24 Payment Form (Italy)
- UniEmens (Italy)