Common use of Competition clause Clause in Contracts

Competition clause. The provisions of the employment contract that forbid workers from working with the employer’s competitors are not binding if they are more far-reaching than necessary to protect the company from competition, or if they limit the workers’ freedom of employment in an unfair manner. In either case, each individual case has to be assessed, taking all factors into consideration. Provisions on competition may therefore not be too general in their wording. When assessing how broad competition provisions in an employment contract may be, particularly with regards to scope of applicability and to time limitations, the following aspects must be taken into consideration: a. The kind of work the employee in question does, e.g. whether he is a key employee or is in direct contact with customers or bears significant responsibilities. There is also the question of the knowledge or information the employee may have about company operations or about its customers. b. How quickly the employee’s knowledge becomes obsolete and whether reasonable parity is maintained between employees. c. The kind of operations in question, and whether there are competitors on the market where the company operates and which the employee’s knowledge covers. d. That the employee’s freedom of employment is not impaired in an unfair manner. e. That the competition provision is defined and precise for the purpose of protecting specific competition interests. f. The rewards the employee receives also has an impact,

Competition clause. The provisions of the employment contract that forbid workers from working with the employer’s competitors are not binding if they are more far-reaching than necessary to protect the company from competition, or if they limit the workers’ freedom of employment in an unfair manner. In either case, each individual case has to be assessed, taking all factors into consideration. Provisions on competition may therefore not be too general in their wording. When assessing how broad competition provisions in an employment contract may be, particularly with regards to scope of applicability and to time limitations, the following aspects must be taken into consideration: a. The kind of work the employee in question does, e.g. whether he is a key employee or is in direct contact with customers or bears significant responsibilities. There is also the question of the knowledge or information the employee may have about company operations or about its customers. b. How quickly the employee’s knowledge becomes obsolete and whether reasonable parity is maintained between employees. c. The kind of operations in question, and whether there are competitors on the market where the company operates and which the employee’s knowledge covers. d. That the employee’s freedom of employment is not impaired in an unfair manner. e. That the competition provision is defined and precise for the purpose of protecting specific competition interests. f. The rewards the employee receives also has have an impact,

Competition clause. ‌ The provisions of the employment contract that forbid workers from working with the employer’s competitors are not binding if they are more far-reaching than necessary to protect the company from competition, or if they limit the workers’ freedom of employment in an unfair manner. In either case, each individual case has to be assessed, taking all factors into consideration. Provisions on competition may therefore not be too general in their wording. When assessing how broad competition provisions in an employment contract may be, particularly with regards to scope of applicability and to time limitations, the following aspects must be taken into consideration: a. The kind of work the employee in question does, e.g. whether he is a key employee or is in direct contact with customers or bears significant responsibilities. There is also the question of the knowledge or information the employee may have about company operations or about its customers. b. How quickly the employee’s knowledge becomes obsolete and whether reasonable parity is maintained between employees. c. The kind of operations in question, and whether there are competitors on the market where the company operates and which the employee’s knowledge covers. d. That the employee’s freedom of employment is not impaired in an unfair manner. e. That the competition provision is defined and precise for the purpose of protecting specific competition interests. f. The rewards the employee receives also has have an impact,