What types of covenants can be recognized in Mexico?
Intellectual property (IP), nondisclosure agreements (NDA), and confidentiality clauses can be included in the employment agreement.
Noncompete and nonsolicitation clauses can be included in the employment agreement; however, they are not strictly enforceable in Mexico and should be previously agreed upon with the supported employee. It would not be unusual for an employee to reject these clauses alleging that it is against their constitutional labor rights.
Can these covenants be enforced? How are they enforced?
Intellectual property, nondisclosure agreements, and confidentiality covenants may be enforced if they are a part of the employment agreement and the supported employee agrees to them. However, noncompete and nonsolicitation covenants would not be enforceable upon the termination of the employment agreement.
Does my supported employee need to be compensated in return for restrictive covenants?
During the duration of the employment agreement, a supported employee does not need to be compensated in return for restrictive covenants. However, upon the termination of employment, employers must grant compensation for making noncompete and nonsolicitation covenants enforceable.