What are non-competition clauses and what rights do you have?
As an engineer or technologist, you may encounter non-competition clauses in your employment contract. These may restrict where you work after termination, but the employer cannot use them freely. You have strong rights, are entitled to compensation and the clause can only last for one year.
What is a non-competition clause?
A non-competition clause is an agreement between you and your employer that limits what you can do after you have left your job. For example, it could mean that you can't start a new job with a competitor, or that you can't start your own business in the same industry right after you leave.
When can non-competition clauses be used?
Relevant rules can be found in Chapter 14 A of the Working Environment Act. Anti-competitive agreements in employment relationships (lovdata.no). In short, the law says the following about non-competition clauses:
1. Must be necessary and in writing
A non-competition clause must be in writing. An employer can only use a non-compete clause if it is necessary to protect the company – for example, if you know about secrets, customers, strategies or technology that competitors may benefit from.
2. Cannot last longer than one year
Even if the clause is valid, the employer can never deny you to work for competitors for more than one year after you leave.
3. Does not apply in the event of downsizing or unfair dismissal
If you are dismissed due to downsizing, finances, reorganisation – or because the employer has not fulfilled its obligations – the clause cannot be used. It only applies if you leave or if you are terminated because of something you have done (for example, breach of loyalty).
What does it take for a non-competition clause to be valid?
It is not enough that you have a non-competition clause in your employment contract. The employer must also provide you with a written statement. This means that they must explain why they think the clause should apply, and what it actually prohibits you from doing.
- If you resign, your employer must give you the statement within four weeks.
- If you are dismissed, the statement must be made at the same time as the dismissal.
- If you are dismissed, it must come no later than one week after.
If you do not receive this explanation, the clause lapses. Then it no longer applies – regardless of what is in the contract.
You are entitled to money if the clause is used
If the employer actually uses the non-competition clause, they must pay you for it:
- You will receive full salary (100%) up to 8 times the National Insurance basic amount (G)
- Above that, you'll get at least 70%
- The sum can be limited to 12 G
Do you have another job while the clause lasts? Then salary from there can be deducted from the compensation you receive. But only up to half.
What is the National Insurance basic amount (G)?
As of 1 May 2025, 1 G amounts to NOK 130,160.
- Most benefits in the National Insurance Scheme are stated in the number of G.
- The basic amount is adjusted on 1 May each year.
Non-solicitation clauses and recruitment clauses
Non-compete clauses are not the only clause used to limit what you can do after you leave your job. You should also know these:
Non-solicitation clauses limit your ability to contact, or take previous customers with you, when you leave.
Non-solicitation clauses last a maximum of one year from the time you leave your job. The employer has the same reporting obligation as in the case of non-competition clauses, but does not have to pay you compensation. The non-solicitation clause can only apply to customers you have had contact with or responsibility for in the last year before the statement is made.
Recruitment clauses limit your ability to influence former colleagues, for example to quit your job as well. Nor can you influence others, such as suppliers, to terminate the contract with your employer.
The Working Environment Act does not regulate the validity of such clauses. However, the courts can set the clauses aside if they are unreasonable. This follows from Section 36 (lovdata.no) of the Contracts Act
What you need to check before you sign
- Read your employment contract – does it say anything about non-competition clauses or other restrictive clauses?
- Is the clause reasonable and necessary?
- How long does the clause last?
- Does it say what you will receive in compensation?
Contact NITO if you are unsure.
Non-competition clauses - in brief
Kan arbeidsgiver nekte meg å begynne hos en konkurrent?
Ja, men bare hvis det er nødvendig – og bare i ett år.
Må konkurranseklausulen være skriftlig?
Ja, både selve klausulen og redegjørelsen.
Hva skjer hvis jeg ikke får skriftlig redegjørelse?
Klausulen gjelder ikke.
Har jeg krav på penger?
Ja, hvis klausulen blir brukt mot deg.
Gjelder konkurranseklausulen ved nedbemanning?
Nei, bare hvis du selv slutter eller blir sagt opp av en god grunn.
Kan konkurranseklausulen avtales i en sluttpakke?
Ja, men det må avtales tydelig.
NITO is here when it matters
Many people do not know where to start when uncertainty arises in working life. As a trade union, we are here to give you security, support and concrete advice – when you need it most.