It is the clause for which the employer and the employee agree to limit the activity of the former employee once the employment relationship has ended.
It is therefore an agreement, which must result from a written act, different from the employment contract and independent of the obligation of loyalty (Art. 2105 c.c.). The competition pact does not only concern unfair competition, but any kind of competitive activity, even though it is legitimate.
By virtue of this agreement, in fact, it is limited to the possibility for a former employee or collaborator to compete with the company for a given period and within a given geographical area at the end of the employment relationship.