The Italian Supreme Court (Corte di Cassazione), with Order No. 436 of January 8, 2026, confirmed that a non-compete agreement is valid even when the compensation is linked to the duration of the employment relationship, provided that it is determinable and adequate to compensate for the restriction of professional freedom.
The ruling stems from a dispute in which a company sought payment of a penalty from a former employee for an alleged breach of the agreement. It reiterates the importance of defining compensation that is proportionate and transparent, ensuring a balance between the employer’s interests and the protection of the employee.
The order, analyzed by Gaspare Roma, Ilaria Uletto, and Veronica Maria Sole Franco in an article published in QuotidianoPiù by Giuffrè Francis Lefebvre, clarifies that the validity of a non-compete agreement does not depend solely on the presence of fixed compensation. It may also be valid where the compensation is determinable, as long as it is adequate. It is essential, in fact, to guarantee the employee compensation that is proportionate to the limitation imposed on their professional freedom for the entire duration of the restriction.