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HomeLatest NewsA commercial indemnifies €5,000 to his ex-company for going to the competition

A commercial indemnifies €5,000 to his ex-company for going to the competition

Date: March 27, 2023 Time: 09:28:37

The Superior Court of Justice of Madrid (TSJM) has sentenced a man to compensate his former company with jurisdiction. 2018 as a commercial to the company Multimos, dedicated to offering and applying technological solutions in the field of ICT (information technology) in the business field.

Among the clauses of the contract, it was stated that “the worker undertakes not to appropriate clients or projects initiated by the company, either on his own account or through companies of the competition”, during the two years after its termination. Fulfillment of this commitment implied the payment, by the company, of 9,944.40 euros, which were paid.

The worker violated the competition agreement

After leaving the company, it learned that the example was violating the competition agreement, having been informed by several clients that it “was reporting confidential data owned by Multimos, to finally contract the services of your company.” In January 2020, the worker joined another company, dedicated to the digitization of tickets and invoices, whose activity was very similar to that of Multimos.

A report prepared by it highlighted that both platforms are tools to record personnel expenses; allow uploading entries through simple photographs; they are approved by the AEAT; It consists of an application and desktop software, and allows you to charge kilometers, among other similarities.

They asked for compensation of 10,000 euros

The TSJM resorts to the jurisprudence of the Supreme Court, and recalls that “it is wrong to understand that for the application of the post-contractual non-competition agreement it is necessary for the company to demonstrate in detail the specific functions developed in the new entity”.

It is not necessary to prove an “exact coincidence” in the activities of one company and the other, or to demonstrate the existence of economic damage suffered, or to prove the worker’s guilt in attracting customers to the new entity to the one that provides services.

For this reason, the court believes that it has been proven that the defendant did violate the agreement signed with his former company, given that it is “evident that in the new company he performs the same professional functions and competes directly with the previous employer.” However, since there is no record that the defendant has usurped customers, nor bad faith, the TSJM has reduced the compensation to 5,000 euros compared to the almost 10,000 requested by Multimos.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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