The employer has the right to withdraw from the competition clause without giving a reason

In its judgment of 21 May 2021, Case No. II ÚS 1889/19, the Constitutional Court resolved the question of the validity of withdrawal from a competition clause (CC) without giving a reason.

The previous case law of the Supreme Court held that the arrangement on the possibility of the employer's withdrawal from the CC without giving a reason is absolutely invalid. However, the law does not prohibit such an arrangement and therefore the Constitutional Court concluded that the Supreme Court's interpretation impermissibly shaped the law. Therefore, now the employer and the employee can agree on the possibility of withdrawing from CC without giving a reason, or because the employer is not interested in its continuation, etc. It must be added, that even according to the Constitutional Court, this possibility of withdrawal cannot be unlimited. Thus, in specific cases, the courts could still find that the employer has abused its right to withdraw. Then, the arrangement in the CC could be declared null and void.