In this thesis, the legal and contractual non-competition in the employment relationship of the Croatian legal system according to the currently valid Labor Law has been fully and thoroughly processed. In addition to the previously mentioned institutes, the work also deals with special cases of legal non-competition governed by special regulations. A comparison of both institutes is made in terms of their duration, termination and consequences of their violation. Their importance for the employer and its business interests is emphasized and is also explained which employee's rights are limited by them. Although the legal and contractual non-competition in the employment relationship are similar, they are actually two different institutes that are legally analyzed in this thesis with special emphasis on individual judgments of the Supreme Court of the Republic of Croatia and various county courts with the purpose of a clearer understanding of this complex matter. Also, in the following text, an attempt is made to explain how justified the existence of these institutes is for the purpose of protecting the employer, but at the same time to point out the negative aspects of their existence for the employee.