Protection of confidential information is not absolute and is subject to limitations, for instance where there is a public interest. Subject to certain conditions, a person who has a nondisclosure obligation may lawfully use the entrusted information despite the confidentiality obligation. At the moment there is no all-embracing regulation on this issue, but this may change soon.
Following the July 2016 amendment to the Public Procurement Law, contracting authorities must indicate which activities during performance of a public contract fall within the definition of an employment relationship under Labour Code Art. 22 §1. They must also require contractors to hire persons performing those activities on the basis of an employment contract and verify that the contractors are in compliance with this obligation.
There is no legal regulation guaranteeing even minimal compensation for refraining from competitive activity after working under a non-employment contract, but such a ban may be found to be contrary to public policy.
The group company benefitting from the results of an employee’s work—not the corporate group as a whole—is the employer
To charge an employer with paying social insurance contributions on the income of its employees earned under non-employment contracts with a third party, it is not enough to determine that the effects of the work benefit the employer’s overall corporate group.
In today’s knowledge-based economy, consolidations of enterprises are common—sometimes even between competitors. Employment reductions are a natural part of any consolidation, but are a source of legal risks for merging competitors. Such risks are hard to eliminate, but does it have to end in stalemate?
Properly maintaining and storing payroll documentation may prove highly important even many years after an employee ceases working with the employer.