Competition provision. Provisions in employment contracts that forbid employees to enter into an employment contract with the competitors of employees by competitors of the employer are non- binding if such an engagement is wider in scope than would be necessary in order to prevent competition or to limit in an unfair manner the employee’s freedom to employment. To determine wheter this is the case, each case must be evaluated on a case-by-case basis, taking into consideration all circumstances. Competition provisions may not be worded too generally. When assessing how far-reaching competition provisions in an employment contract may be, particularly as regards their scope of application and the time limits involved, the following factors must be considered:
Competition provision. Provisions in employment contracts that prohibit employees from working for their employers’ competitors are non-binding if such provisions are broader than is necessary to prevent competition or if they restrict the employees’ freedom of employment in an unfair manner. In either case, such provisions must be evaluated on a case-by-case basis with consideration to all relevant factors. Competition provisions should therefore not be worded too generally. In assessing the breadth of an employment contract’s competition provision, particularly in terms of the scope of application and time limits, the following factors must be taken into consideration:
Competition provision. For a period of three (3) years following the Closing Date:
