Non-Compete Agreement In German « HipertensiÃ³n Pulmonar Chile

Non-Compete Agreement In German

Publicado el 11/4/2021

The case law considers that the conclusion of preliminary agreements by which a worker agrees, at the employer`s request, to agree on a non-competition clause and a specific drafting for the period following the termination of employment is in principle permissible. But beware: depending on the circumstances and the concrete conditions, such a pre-agreement may constitute an unfair obstacle to the worker`s progress under S 74a, paragraph 1, of the HGB. Our labour law specialists take care of your labour law business. You have experience in enforcing a no-competition agreement for your company or in defending against claims of omission and injury from opposing parties. In the overlapping of labour and corporate law, lawyer Dr. Christian Zeller will represent you with vigilance and perseverance before all labour tribunals throughout Germany. Interim Non-Competing Cessation Agreement If, on the other hand, the employer awaits written notification up to one month before the expiry of the employment contract, the employer is required to compensate the worker for 11 months after the termination of the employment (i.e. 12 months from the date the employer informed the worker of the waiver of the non-compete clause). and the worker can enter immediately after the end of the employment relationship. The narrow line between an authorized preliminary contract and unacceptable “conditional” competitive conditions These rules apply to employees and professionals who are economically dependent on the employer. It is not clear to what extent these requirements apply to social bodies (z.B. managing directors of a German company, member of the board of directors of a German company) and other independent independents, and what changes (particularly with regard to the payment of compensation) are possible.

However, in order to ensure that the post-competition non-competition contract is applicable, these requirements are often met in practice. The maximum period permitted under German law of an un contractual non-competition clause authorized by German law is two years after the termination of the employment relationship. However, a shorter period (up to two years) is also possible. The waiver of post-contract non-competition is governed by the mandatory law, which cannot be repealed or amended by an agreement between the employer and the worker. The employer may at any time waive in writing the post-contract non-competition clause during the employment relationship. In this case, the employer`s obligation to pay compensation at the end of a 12-month period (from the date the employer waives the non-competition clause with respect to the employee) would no longer be in place. On the other hand, the worker is free to confront the employer immediately after the expiry of the notice period (provided that the employment relationship is still active at the time the employer waives the non-competition clause). A waiver of a valid non-competition clause may be declared at any time (in writing), but only for the duration of the employment contract (until the end of the notice period).

The waiver applies immediately to the worker who is entitled to the compensation for a period of one year. This is why careful forecasting is required. Due to the obligation to pay compensation, post-contractual non-competition agreements are only common in Germany for key workers with significant knowledge of the employer`s activity or close customer relations.

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Non-Compete Agreement In German