Contracts often still have these clauses in the EU but they're unenforceable. Being able to work anywhere in the EU is considered a right, and these clauses attempt to block that right. You're not allowed to stop someone finding gainful employment, even if that could damage your own business.

Yeah, that's very nice when you have a working legal system. In Hungary a case like this will take 5 years, and you will most probably loose. They can steal your software, your artwork, your clients, your intellectual property, and you loose the case. Absurd. Happens all the time, not only to me. Judges are clueless in such matters.

Actually you're not alone. I have a startup in Azerbaijan, the same situation. I divided the work between workers, they can't to the work alone, so they don't know actually what they are doing. I teached the some parts of the business, they do the mechanical work, without asking the questions. I also made a non-compete clause between them for 2 years. Here are some tips from other HN community for this issue:

1. Split your workers into departments. No one single worker should handle all the processes.

2. Use forms to guide people through the process. It will make your processes easier to automate.

3. Take some upfront payment. That will discourage customers from dealing with your employees on the side.

Another trick that I learnt from somebody else is to hold one key process to yourself.

Someone I knew gets clothing manufactured in China. But before it is sold, they do an adjustment to it that is not known to the factory.

Just as Coke has its "secret recipe", you have to make clear to your freelancers that you have a secret step. It will be enough to discourage them from running away with business.

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Look, of course it's possible to find workarounds. But the issue is still valid. There's a huge problem with work ethics. People too often feel they have the right to steal whatever they like, unless of course I can stop them. And the issue is still there. Our justice system does not do justice. I don't want to create an 1984 work envorinment. I do want to trust the people I'm working with. And if they - after signing all the good contracts - in an environment that is built on mutual trust, they steal my property, I want the justice system to do justice.

"people too often feel they have the right to steal whatever they like, unless of course I can stop them." - so as long as THEY are powerless (or proportionately dis-empowered at least), YOU can reap the upside of risks taken where the downside has been externalised? Sounds like "theft" to me! Who exactly do you want the justice system to do "justice" for?

Property is theft :p

Look, what's mine is mine. It should not be legal to steal it.

I'd say division of labor/"departments" are a must-have no matter where you are based. Sometimes LAZY managers/owners put employee level developers together with customers and make them even handle billing/contracts. At one point such employees realize that they don't need you or your company! And why should they?

Besides, specialization increases productivity.