Constitutional Court: Non-Compete Agreement Does Not Violate the Right to Freedom of Labour

The Constitutional Court considered a petition seeking review of the constitutionality of paragraphs 1 and 2 of Article 29 of the Labour Code of the Republic of Kazakhstan, which regulate the conclusion of a non-compete agreement between an employer and an employee.

The applicant argued that the possibility of imposing restrictions after the termination of an employment contract affects the right to freedom of labour and freedom of entrepreneurial activity.

The Constitutional Court noted that Article 29 of the Labour Code is framework in nature and provides for the possibility of concluding a non-compete agreement by mutual consent of the parties, while its specific terms and restrictions are determined by the parties in accordance with the requirements of the law.

At the same time, issues concerning the validity of the terms of the agreement, the recovery of penalties, and the existence of damage suffered by the employer fall within the jurisdiction of the courts of general jurisdiction. The review of judicial decisions and the assessment of the factual circumstances of a case do not fall within the powers of the Constitutional Court.

Accordingly, no grounds were found for accepting the petition for constitutional proceedings.