Protecting Business Interests Following Termination
What types of restrictive covenants are recognised?
Restrictive covenants are not specifically governed by Maltese law however it is common practice for employment agreements to contain non-solicitation and non-competition clauses which would be applicable for a certain period after the termination of an employment contract.
When are restrictive covenants enforceable and for what period?
The enforceability or otherwise by a Maltese court of such covenants would depend on the actual losses sustained by the employer.
Do employees have to be provided with financial compensation in return for covenants?
Since restrictive covenants are not specifically catered for under Maltese law such financial compensation is not mandatory but may nevertheless be catered for in the employment agreement.
How are restrictive covenants enforced?
The enforceability of otherwise would be decided upon by the Maltese courts.