“A non-competition clause always serves to protect the employer’s enterprise. An employer must therefore know exactly for what reasons the non-competition clause is necessary”
Many employment contracts contain non-competition and non-solicitation clauses. In the case of a non-competition clause, an employee may not compete with the (former) employer for a certain period of time after leaving the company. With a non-solicitation clause, an employee is prohibited from approaching business relations of the employer after leaving the company.
With a non-competition clause, an employer can guarantee that confidential and sensitive information obtained by an employee with regard to the employer’s company is not used to compete with the employer or to otherwise harm the employer’s enterprise and interests.
Important legal requirements apply to non-competition and non-solicitation clauses in employment contracts. For example, a non-competition or non-solicitation clause must be agreed upon in writing and an employee can contest the clause if the employer has insufficient interest in enforcing the clause.
