������Ƶ

A Non-Compete Agreement is a legal contract that stops employees from working for competitors or starting rival businesses after leaving their job. In Austria, these agreements (Konkurrenzklausel) must follow strict rules under the Austrian Employment Act (Angestelltengesetz) and can only last up to one year after employment ends.

Austrian law allows these agreements only for senior employees earning above a specific salary threshold, currently set at €3,780 monthly gross. The agreement must specify reasonable limits on industry scope, geographic area, and duration. Courts often reduce or invalidate overly broad restrictions, especially if they make it too difficult for former employees to earn a living in their field.

Use a Non-Compete Agreement when hiring key employees who will gain access to sensitive business information, trade secrets, or valuable client relationships. This is especially important in Austrian technology firms, consulting agencies, and specialized manufacturing companies where competitive advantage depends heavily on proprietary knowledge or customer connections.

The timing matters - introduce these agreements during initial employment negotiations with senior staff earning above the mandatory salary threshold. Austrian courts look more favorably on non-competes that are part of the original employment contract rather than added later. Focus particularly on roles involving product development, strategic planning, or significant client contact where an employee's departure to a competitor could seriously impact your business.

• Non Compete Non Disclosure Agreement: Combines confidentiality protection with competition restrictions, ideal for roles handling sensitive data
• Non Compete Contract: Standard employee-focused agreement with basic competition restrictions
• Non Compete Non Solicitation Agreement: Prevents both competitive employment and client/employee poaching
• Non Compete Agreement Between Companies: Used between business entities during partnerships or acquisitions
• Business Non Compete Agreement: Broader protection focusing on overall business interests and market competition

• Employers: Usually mid to large companies, particularly in tech, consulting, or specialized industries, who draft and enforce Non-Compete Agreements to protect business interests
• Senior Employees: High-earning professionals (above €3,780 monthly) who must sign these agreements as part of their employment terms
• Legal Counsel: Internal or external lawyers who ensure agreements comply with Austrian labor law and craft enforceable restrictions
• HR Directors: Responsible for implementing these agreements within company policy and managing their execution during hiring
• Labor Courts: Austrian judges who determine enforceability and resolve disputes when agreements are challenged

• Employee Details: Confirm the employee's position and monthly salary exceeds €3,780 to meet Austrian legal requirements
• Scope Definition: Map out specific competitive activities to restrict, keeping geographic and industry limitations reasonable
• Time Period: Determine duration (maximum 1 year under Austrian law) and effective date of restrictions
• Business Interests: Document specific trade secrets, client relationships, or proprietary knowledge requiring protection
• Compensation: Calculate any compensation offered during the restricted period
• Template Selection: Use our platform's Austrian-compliant templates to ensure all mandatory elements are included correctly

• Party Details: Full legal names, positions, and confirmation of employee's qualifying salary (above €3,780 monthly)
• Scope Definition: Clear description of prohibited competitive activities and industry sectors
• Geographic Limits: Specific regions or territories where restrictions apply, keeping within reasonable bounds
• Duration Clause: Explicit time period not exceeding one year post-employment
• Compensation Terms: Any financial consideration during the restricted period
• Protected Interests: Specific business interests, trade secrets, or client relationships being protected
• Severability Clause: Provision ensuring partial validity if some terms are found unenforceable

A Non-Compete Agreement differs significantly from a Non-Disclosure Agreement in both scope and purpose. While both protect business interests, they serve distinct functions under Austrian law.

• Legal Focus: Non-competes restrict future employment activities and competitive behavior, while NDAs specifically protect confidential information from disclosure
• Duration Limits: Austrian law caps non-competes at one year post-employment, but NDAs can remain effective indefinitely
• Salary Requirements: Non-competes only apply to employees earning above €3,780 monthly, while NDAs can be used with any employee regardless of salary
• Enforcement Scope: Non-competes face stricter court scrutiny and must demonstrate reasonable geographic and industry limits; NDAs generally face fewer restrictions
• Compensation Rules: Non-competes often require specific compensation during the restricted period; NDAs typically don't require additional payment