Non compete and non solicitation in Brazil

The non-compete and non-solicitation clauses are usually used in agreements related to hiring of manager positions. However, in Brazil such clauses are being included in all types of contracts and levels of employment. Although the enforceability of the non-compete and non-solicitation clauses are protected by the Brazilian laws, the STJ (Superior Tribunal de Justiça), so far, has not yet a uniform interpretation concerning the validity of such clauses. According to STJ, such clauses will be considered legal when their application is limited to a certain period and the indemnification amount is based in the amount established to compensate the other party for the restriction imposed.

When negotiating and doing business in Brazil or with a Brazilian part, such particularities must be beard in mind.