Non-Disclosure and Non-Compete Agreements: Analysis of the Foreign Practice and Their Validity According to the Current Legislation of Ukraine

Abstract

The article provides an analysis of the foreign practice on the application of the non-disclosure and non-competition agreements. The author argues that the implementation of the non-compete & non-disclosure agreements in modern Ukrainian legislation is not possible, as it directly contradicts the provisions of the main acts of the current Ukrainian legislation. It means that in Ukraine and within its territorial jurisdiction there are no effective methods of protection against unfair competition in any form, including the disclosure of commercial secrecy by a former employee or contractor under a civil law contract. In terms of the foreign practice non-competition agreements should always be based on the mutual respect of the parties and their mutual desire to fulfill their promises. It must be taken into account by the Ukrainian business entities in case of their foreign economic activity. Observance of all necessary conditions while concluding such agreements allows not only to protect the interests of the customer but also to maintain the loyalty of counterparties. The author argues that despite the invalidity of these agreements in terms of the national law norms, it is important to adhere to the generally accepted norms of their validity in foreign economic activity.