Concurrentiebeding

The non-compete clause serves to protect the employer’s legitimate interests, including trade secrets, customer relationships and know-how. It restricts the employee from working for competitors or establishing a competing business, typically for a limited period and within a defined geographic area.

To be valid, the clause must be agreed in writing with an employee who has reached the age of majority. The court may assess the clause for reasonableness and may moderate or set it aside if it imposes an undue burden on the employee.

In practice, a non-compete clause is frequently invoked when an employee leaves to join a competitor, in which case the employer may claim a contractual penalty for breach.