In addition to flexible engagement models, the Diia City regime provides a structured legal framework for protecting business interests of IT companies, particularly in relation to confidential information and competition.
Non-disclosure agreements (NDAs)
Diia City residents may enter into non-disclosure agreements with employees, gig specialists, or other persons.
An NDA typically provides that the relevant person undertakes not to disclose:
- trade secrets and/or
- other confidential information of the company or regarding the company
NDAs must be concluded in writing and may be unpaid. They may also provide for compensation in case of breach.
NDAs must clearly define:
- the duration of the confidentiality obligation
- the scope of information covered
Importantly, such NDAs are not subject to labour law restrictions, even when concluded with employees.
Non-compete agreements
Diia City also introduces a specific legal framework for non-compete obligations.
To be valid, a non-compete agreement must be concluded in writing and clearly define:
- the duration of the restriction (up to 12 months after termination of the relationship with the IT specialist)
- the geographical scope
- the scope of competing activities (or competing entities)
- the compensation provided to the specialist
Non-compete obligations may include restrictions such as:
- entering into employment, gig or other agreements (contracts) with competing entities
- performing competing activities as a private entrepreneur
- holding an ownership interest in competing businesses
- participating in the management of competing businesses
Importantly, refusal to enter into a non-compete agreement cannot serve as grounds for termination of employment or a gig contract.
Overall, Diia City provides a significantly more structured and enforceable framework for non-compete agreements than general Ukrainian legal practice.
