2015/29 Employer may not unilaterally waive non-competition clause (PT)
The employer, having announced to the employee its decision not to comply with the non-competition clause the parties had entered into five years before, refused to abide by it when the employment contract ended. The employee brought the matter before court, demanding payment of the sum specified in the clause in return for one-year’s noncompetition. The first instance court upheld the employer’s position, but the Court of Appeal of Lisbon overturned it, in a ruling that was later confirmed by the Supreme Court of Justice. Both higher court decisions denied the employer the right to cancel a non-competition clause, given the employee’s legitimate expectations.
Supremo Tribunal de Justiça (Supreme Court of Justice), 2014-04-30