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Employee Non Compete Agreement
"I need an Employee Non-Compete Agreement under German law for a senior software developer who will have access to our proprietary AI algorithms, with a two-year restriction period and coverage across the European Union, to be effective from March 2025."
1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Brief context of the employment relationship and reason for the non-compete agreement
3. Definitions: Key terms used in the agreement, including 'Competitive Activity', 'Restricted Territory', and 'Restricted Period'
4. Scope of Non-Compete Obligation: Detailed description of prohibited competitive activities and specific limitations
5. Duration: Time period of the non-compete obligation (maximum 2 years under German law)
6. Geographic Scope: Definition of the territorial scope where the non-compete applies
7. Compensation: Details of the mandatory compensation (at least 50% of the last contractual remuneration) during the non-compete period
8. Payment Terms: Specifics about how and when the compensation will be paid
9. Reduction of Compensation: Conditions under which compensation may be reduced due to other earnings during the restricted period
10. Employer's Waiver Right: Terms under which the employer may waive the non-compete obligation
11. Contractual Penalty: Consequences of breach and penalty provisions
12. Governing Law: Specification of German law as governing law
13. Severability: Standard clause ensuring survival of remaining provisions if parts are found invalid
1. Trade Secrets Protection: Additional provisions specifically addressing protection of trade secrets, recommended when employee has access to sensitive information
2. Customer Non-Solicitation: Specific provisions regarding customer relationships, relevant for customer-facing roles
3. Employee Non-Solicitation: Provisions preventing recruitment of other employees, relevant for management positions
4. Training Cost Reimbursement: Provisions regarding repayment of training costs, applicable when significant training investment was made
5. International Scope: Additional provisions for employees working across multiple jurisdictions
6. Garden Leave: Provisions regarding any period of garden leave and its interaction with the non-compete period
1. Schedule 1: Compensation Calculation: Detailed breakdown of the compensation calculation, including base salary, bonuses, and benefits
2. Schedule 2: Restricted Territory: Detailed map or list of geographical areas covered by the non-compete
3. Schedule 3: Competitor List: Non-exhaustive list of known competitors for reference
4. Appendix A: Employee's Current Position and Duties: Detailed description of the employee's role and responsibilities
5. Appendix B: Confidential Information Definition: Specific categories of confidential information covered by the agreement
Authors
Technology
Financial Services
Professional Services
Manufacturing
Pharmaceuticals
Biotechnology
Consulting
Software Development
Research and Development
Engineering
Healthcare
Telecommunications
Chemical Industry
Automotive
Consumer Goods
Executive Leadership
Sales
Business Development
Research & Development
Product Development
Engineering
Information Technology
Customer Success
Professional Services
Marketing
Operations
Finance
Human Resources
Legal
Strategy
Chief Executive Officer
Chief Technology Officer
Senior Software Engineer
Sales Director
Business Development Manager
Research Scientist
Product Manager
Technical Lead
Account Executive
Senior Consultant
Department Head
Regional Manager
Chief Financial Officer
Head of Research
Senior Project Manager
Business Unit Director
Key Account Manager
Development Engineer
Solutions Architect
Marketing Director
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