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A Non-Compete Agreement is a legal contract that stops employees from working for competing businesses after leaving their job. In Denmark, these agreements are strictly regulated under the Danish Act on Employment Clauses, which limits how long and strict these restrictions can be.

Danish law only allows non-competes to last up to 12 months after employment ends, and employers must pay at least 40% of the employee's salary during this period. Companies typically use these agreements to protect trade secrets, customer relationships, and specialized knowledge, but they must prove a genuine business need to enforce them.

Consider using a Non-Compete Agreement when hiring employees who will gain access to sensitive business information or develop close relationships with key customers. These agreements are particularly valuable for protecting trade secrets, client lists, and specialized knowledge in industries like tech, consulting, and professional services.

Under Danish law, timing is crucial. The agreement must be presented at the start of employment, and you need to specify compensation of at least 40% of salary during the restriction period. Use them selectively for roles where the potential damage from competition justifies the significant costs of maintaining these agreements.

• Non Compete Contract: Basic version focusing solely on competitive restrictions for employees, with standard 12-month duration and compensation terms
• Non Solicitation Agreement: Specifically prevents former employees from approaching clients or staff, without restricting their work location
• Non Competition Non Solicitation And Confidentiality Agreement: Comprehensive protection covering competition, client contact, and information security
• NDA And Non Compete Agreement: Combined agreement protecting both trade secrets and competitive interests
• Non Compete Agreement Between Companies: Used between businesses during partnerships or acquisitions to prevent market competition

• Employers/Companies: Draft and enforce agreements to protect business interests, must provide proper compensation and prove legitimate business need
• Key Employees: Typically senior managers, sales representatives, or technical specialists who have access to sensitive information or customer relationships
• HR Departments: Handle implementation, ensure compliance with Danish employment law, and manage compensation calculations
• Legal Counsel: Draft and review agreements to ensure they meet Danish legal requirements, especially regarding duration and compensation
• Labor Unions: Often involved in negotiating terms and protecting employee rights under collective agreements

• Scope Definition: Clearly identify which business interests need protection and how they justify competitive restrictions
• Compensation Planning: Calculate minimum 40% salary compensation and budget for the restriction period
• Time Limits: Define restriction period (maximum 12 months) and effective start date
• Geographic Bounds: Specify reasonable territorial limits where restrictions apply
• Employee Details: Document role, access to sensitive information, and customer relationships
• Legal Requirements: Our platform ensures compliance with Danish employment law while generating custom-fit agreements
• Internal Review: Confirm all details with HR and department heads before presenting to employee

• Parties and Dates: Full legal names, positions, and agreement duration (maximum 12 months post-employment)
• Compensation Terms: Explicit statement of minimum 40% salary compensation during restriction period
• Scope Definition: Clear description of prohibited competitive activities and geographic limitations
• Business Interests: Specific details of trade secrets, customer relationships, or knowledge being protected
• Notice Period: Required timing for informing employee about agreement enforcement
• Termination Conditions: Circumstances where restrictions apply or cease
• Legal Compliance: Our platform automatically includes all mandatory elements under Danish law, ensuring valid and enforceable agreements

While Non-Compete Agreements and Non-Disclosure Agreements both protect business interests, they serve distinct purposes under Danish law. A Non-Compete prevents former employees from working for competitors, while an NDA focuses solely on protecting confidential information.

• Compensation Requirements: Non-Competes must provide 40% salary compensation during restrictions; NDAs typically don't require compensation
• Duration Limits: Non-Competes are legally capped at 12 months in Denmark; NDAs can extend indefinitely
• Scope of Restriction: Non-Competes limit employment options and business activities; NDAs only restrict information sharing
• Legal Scrutiny: Courts examine Non-Competes more strictly due to their impact on employment rights; NDAs face less scrutiny
• Typical Timing: Non-Competes activate after employment ends; NDAs usually start immediately and continue post-employment