How do you enforce a non-compete: contractual penalty, interim relief or settlement?
Employers in Poland most often enforce a post-termination non-compete through a contractual penalty, because it relieves them of proving the amount of loss. Damages exceeding the penalty are available only if the agreement expressly reserves them (Article 484 of the Civil Code). Where no penalty was stipulated, the employer claims damages under the general rules. It can also seek an order to stop further breaches.
A contractual penalty can be stipulated only in a post-termination non-compete agreement. To claim it, you need a valid agreement (among other things, in writing and for a fixed term) and proof of the breach; for damages, also proof of loss and causation.
In urgent cases, you can apply for interim relief before filing the claim or during the proceedings, for example for an order prohibiting a specified activity while the case is pending. A court may decide within days or weeks, but this is not assured: timing depends on the court and on whether it holds a hearing. You must substantiate the claim and a legal interest in the relief, and courts approach such far-reaching measures with caution.
Two observations from our practice. Costs of such proceedings are usually moderate, although they depend on the value of the claim, expert evidence and duration; the main costs are usually legal representation and expert opinions. Many such disputes settle, because that is quicker and cheaper for both sides. Employment cases also benefit from preferential court fee rules.