Non Compete Agreement Deutsch

Non-Compete Agreement Deutsch: Understanding the Terms

A non-compete agreement, also known as a non-competition clause, is a legal contract that prohibits an employee from working with a competitor for a specific period of time after leaving employment. In Germany, this agreement is referred to as a «nicht-wettbewerbsvereinbarung» or «Wettbewerbsverbot.»

Non-compete agreements are usually included in an employment contract, and their purpose is to protect the employer`s trade secrets and confidential information from being used by a competitor. These agreements are typically used in industries where employees have access to sensitive information or have specialized skills that could be used by a competitor to gain an advantage.

While non-compete agreements can be beneficial for employers, they can also limit a former employee`s ability to find new employment. Therefore, these agreements are subject to legal scrutiny and must meet certain criteria to be legally enforceable.

Under German law, non-compete agreements must be in writing and signed by both the employer and employee. The agreement must clearly state the scope of the non-compete clause, including the specific activities that are prohibited, the geographical area in which the prohibition applies, and the duration of the non-compete clause.

The duration of a non-compete agreement generally ranges from six months to two years, depending on the industry and the level of the employee`s involvement in the company`s trade secrets. In some cases, the duration of the non-compete agreement can be extended if the employee receives compensation during the restricted period.

While non-compete agreements are legal in Germany, they are subject to legal restrictions. For example, a non-compete agreement cannot prevent an employee from pursuing their profession altogether. Furthermore, German courts have held that non-compete agreements must be reasonable in scope and duration. An agreement that is too broad or extends for an unreasonable amount of time may be found to be unenforceable.

In conclusion, a non-compete agreement in Germany is a legal contract that prohibits an employee from working with a competitor for a specific period of time after leaving employment. These agreements must be in writing, clearly state the scope of the non-compete clause, and be reasonable in scope and duration. If you are an employee or employer considering a non-compete agreement, it is essential to understand the terms and legal restrictions to avoid any potential legal disputes.