Non-compete obligations are of great importance for working and economic life.
Dealing with the right of post-contractual restraints causes considerable difficulties and is characterized by legal uncertainties. The legal principles under §§ 74 to 75d HGB (Code of Commerce) has remained unchanged since 1914 and the right of post-contractual restraints is largely a case law.
There is a widespread uncertainty while dealing with post-contractual restraints, which leads to non-compete obligations with serious defective clauses. Many mistakes are made while dealing with effectively agreed restraints on competition, particularly when terminating the employment relationship and reacting on illegal activities. Our aim is to work together with clients to develop legally compliant solutions, which take account of justified interests and guarantee the implementation before labor courts.
In order to recognize defects of clauses and develop strategies for the outgoing worker, it is necessary to have updated knowledge and years of experience. You should know that an inadequate non-competition clause does not necessarily lead to invalidity, but a non-binding competition restraint grants the employee the option whether the prohibition of competition becomes effective or not. This can gain substantial importance especially in the case of separation.