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Supplement to Employment Agreement: Non-Compete Clause

Key points and template

Approovd helps you to create a legally compliant non-compete agreement with your employees easily and in just a few minutes. For only CHF 89 per document.

Key Points Included in this Non-Compete Agreement

Territory, sector, and duration of the non-competition clause
Option to prohibit poaching of employees and customers
Compensation option (including payment modalities)
Contractual penalty

Use this Non-Compete Agreement if …

… if you want to prevent the active poaching of your employees from your competitors

… certain employees regularly work with sensitive information (such as customer data) that absolutely must be protected from the competition

… you want to prevent former employees from poaching your customers

What is a Non-Compete Agreement?

This agreement is a supplement to an employment agreement and complements it with a non-compete clause. It is also possible to amend existing non-compete provisions with this supplement.

The law requires employees to be loyal to their employer for the duration of the employment relationship, but does not impose a similar obligation for the period after leaving the company. Thus, employees who have access to business secrets (such as know-how, customers, source codes, etc.) could use this information to compete with the employer after they leave. Also, employees who managed teams and/or were responsible for customer relationships could be tempted to poach them later. To protect against these risks, employers often seek to enter into a non-compete agreement with their employees. In this case, employees are not allowed to compete with their former employer even after they have left the company.

However, the non-competition clause cannot be unlimited, i.e. the employer and the employees must define its scope. They thus define the territory concerned, the field of activity (for example, the chips manufacturing industry), and the duration of the non-competition clause. The duration of 3 years may be exceeded only in extraordinary cases. A court can always reduce a penalty that is considered too high. Furthermore, in most cases, the employers must waive the non-competition clause if they dismiss the employees.