Non-Compete Clause | Non-Solicitation Clause

 

Would you like to have a non-compete clause analysed?

 

We analyse, draft, negotiate, prosecute and defend non-competition (non-solicitation  clauses in Swiss Employment / labour agreements within Switzerland.

Get in contact with T. Villiger, specialized Employment Lawyer and Attorney at Law via Tel. 043 535 00 85 / villiger(at)ad-voca.ch or Internet. We are looking forward to helping you. 

It needs a foresighted analysis to define whether a non-compete clause is formally valid and enforceable in the specific case. We highly recommend to directly engage an Attorney at Law (not only a legal consultant) which can provide you continuing support through all steps - analysis - negotiation - legal proceeding (where needed). 

First it should be analysed if a non-compete clause is formally valid and enforceable in a particular case. This costs normally between CHF 200 - CHF 600 excl. depending on the complexity. 

What is a non-competition clause?

With a written non-competition clause, the employee undertakes not to compete with the employer after termination of the employment relationship. The non-competition clause is usually binding if the employee had access to the employer's clientele or manufacturing and business secrets and the use of this knowledge could significantly harm the employer.

Are non-competition clauses enforceable in Switzerland?

The validity and enforceability of non-competition clauses/restrictive covenants depend heavily on the form, the wording, the reasons for termination of the employment relationship and other requirements. A strong non-competition clause can actually prevent employees from taking up new employment, while a weak one is very difficult to enforce.

 

What are the penalties for non-compliance?

In order to make it easier for the employer to enforce non-competition clauses, penalty payments can additionally be agreed in an employment contract. They can usually amount to a year's salary. 

 

Is there a right to monthly compensation?

Swiss law doesn't provide for monthly compensation for non-compete / restrictive covenants / non-solicitation. However, they can be agreed in the employment contract. 

 

How do we proceed?

The analysis of an existing non-compete / non-competition clause involves a review of the clause in the employment contract and the applicable regulations, the employment relationship and the reason for termination (depending on complexity normally: CHF 200 - CHF 600 excl.). An hourly rate applies for negotiations. Don't hesitate to contact us via Tel. 043 535 00 85 / villiger(at)ad-voca.ch or Internet.

It is recommended that you engage an attorney at law (not just a legal advisor), as this will enable you to set the right course from the outset.

Our law office is located in the center of Zurich city, Switzerland. Click here to read more about our collaboration.