Between protection and mobility, non-compete clauses put to the test in the cosmetics packaging market

In the cosmetics and luxury goods packaging sector, non-compete clauses are widely used to secure customer relationships, preserve expertise, and protect competitive advantages.
In a tense market, where every recruitment decision involves both human and strategic issues, a good understanding of this clause is key to long-term stability and performance.
Here is a collection of practical advice supervised by Maître Irène Ngando, a lawyer at the Paris Bar specializing in labor law, intended for those who are about to sign an employment contract.

When you join a company, you rarely think about leaving. However, this is when the non-competition clause becomes particularly important. First, it is important to remember a fundamental principle: non-competition clauses are not inherently unfair. Their purpose is to protect the legitimate interests of the company.
In the current context, this protection is understandable. The cosmetic packaging sector is going through a difficult period. For many players, 2025 has been marked by increased pressure on turnover, sometimes a decline, and increased competition. When the “pie” gets smaller, every company wants to protect itself all the more.
This protection is linked to the relationships built with customers, in which sales and project teams play a decisive role, but also to the company’s capacity for innovation, its CSR standards, the quality of its execution, and its technical or sector-specific expertise. Giving competitors access to certain sensitive information could weaken the company in the long term.
However, this imperative must not overshadow another fundamental principle: the employee’s right to find another job. A decent job, consistent with their experience, where they can continue to use their skills. In most cases, this professional continuity is achieved... in the same sector.
The non-competition clause is therefore always a question of balance, which comes into play as soon as the contract is signed.

When signing: what to check!

When joining a company, attention naturally focuses on the position, compensation, scope, and team. The non-compete clause is often relegated to the end of the document. However, this is precisely the moment when you need to take the time to think ahead: not about joining the company, but about leaving it.
The first question concerns its justification. Does the position really expose you to sensitive data: strategic information, commercial conditions, innovative projects, distinctive know-how? This is particularly important for junior or intermediate positions, where access to key information may be limited.
The duration is the second important point. In the packaging sector, twelve months is the most common duration; twenty-four months exists but remains more exceptional. The longer the duration, the greater the constraint and the more it may justify a higher financial compensation.
The territory must also be carefully considered. A ban covering Europe, Asia, or North America illustrates the difficulty of reconciling everyone’s interests: the territory concerned must correspond to the reality of the position held while allowing the employee the opportunity to find another job. Too broad a scope can make the clause excessively restrictive.
Finally, the financial compensation is central. It is mandatory. In practice, there are several situations:
– at around 20%, compensation is often considered low in view of the constraint imposed;
– at around 30%, the compensation is considered to be relatively balanced;
– at 50%, the clause becomes very costly for the company and generally corresponds to the protection of particularly strategic interests.
It is in light of these four elements that the validity of the clause will be assessed by a judge.
Another point that is often underestimated deserves attention: some clauses provide for the possible activation of this clause even in the event of termination of the contract during the trial period, even though knowledge of the company, its customers, and the issues at stake remains very limited.
Finally, it is essential to examine how the company defines its activity. If the packaging sector is considered as a whole, the range of companies considered to be competitors can become extremely broad (primary, secondary, decoration, accessories, services). In a sector characterized by partnerships, subcontracting, and cross-collaboration, this issue is often more complex than it appears.

Initially: risks that should not be underestimated

In practice, non-competition clauses are not systematically activated. They are most often implemented in the event of resignations or contractual terminations rather than after dismissals.
Whether the contract ends at the time of resignation, dismissal, or contractual termination, the clause applies at the end of the contract. However, in the event of a waiver of notice, the waiver must take effect at the time of the employee’s actual departure, and not at the theoretical end of the notice period. The activation of the non-competition clause entails the employer’s obligation to pay the agreed financial compensation, generally on a monthly basis. In the event of non-payment, the employee regains their freedom of employment.
The employer may, however, waive the non-competition clause, which makes the employee free to work for any company. In this case, the employer must do so expressly and within specific time limits that may be provided for in the collective agreement or employment contract.
The waiver deadlines are a major point of concern. Some contracts stipulate that the employer may waive the clause within eight or fifteen days of the end of the contract, which creates considerable uncertainty for the employee regarding the scope of their job search.
A final crucial point concerns the promise of employment or letter of commitment. By signing, the candidate certifies that they are free of any commitments. Declaring this to be the case when it is not exposes them to serious consequences: termination of the contract by the new employer, a request from the former employer to cease the violation of the non-competition clause, or even legal action involving both parties.

Innovation, confidentiality, and loyalty: a fine line

Another recurring point of tension concerns the protection of unfinished innovations. Do ideas, concepts, R&D avenues, or projects that are in progress but not yet commercialized really fall under the non-compete clause, or rather under confidentiality and loyalty obligations?
In a sector where innovation is constant, often collective, and sometimes cross-functional, this distinction is far from theoretical. If not properly anticipated, it can become a source of litigation, even though other legal tools are often more appropriate.

Collective agreements: an element not to be overlooked

Non-compete clauses are not strictly regulated by law, but are largely shaped by case law and, above all, by collective agreements, which can be decisive. In cosmetic packaging, several agreements may apply and set specific rules. One principle must be remembered: a clause that does not comply with the applicable collective agreement is automatically void, even if it is included in the employment contract.

What alternatives are there to protect the company without alienating the employee?

There are contractual solutions that protect the company’s interests without hindering mobility. Confidentiality clauses remain the most effective tool for protecting sensitive information. Training repayment clauses may also be relevant when a significant investment has been made. In addition, there are non-solicitation and non-poaching clauses, but these must be used with caution, as some may be reclassified as agreements.
It should be noted that, regardless of whether or not there is a non-competition clause, employees are always bound by a duty of loyalty that prohibits them from engaging in acts of unfair competition (misappropriation of files, mass poaching, etc.).

Anticipate rather than repair

Non-compete clauses will obviously continue to exist. However, many conflicts could be avoided by carefully reading the contract, clearly understanding the issues at stake, and providing support upstream, in particular by negotiating the content and terms of application of the non-compete clause.
It is with this in mind that my firm supports companies and candidates, in conjunction with a partner legal advisor, in order to anticipate risks, secure career paths, and preserve lasting professional relationships.

Because a good working life often starts with a well-understood contract.

Ioulia Mikaïloff
Identités Remarquables - ioulia.mikailoff@identites-remarquables.fr