Non-Compete Clauses: A Global Perspective
Germany: Post-Contractual Non-Compete Covenants in a Nutshell
In Germany, post-contractual non-compete covenants are strictly regulated and subject to the principle of reasonableness.
Maximum Period and Scope
The maximum period of a post-contractual non-compete restriction is two years after termination of employment. However, the scope of the restriction is limited to activities that are directly related to the employee's former work duties.
Prohibition in California
In the United States, non-compete agreements are generally prohibited in California. However, limited exceptions may apply in certain industries or for executive-level employees.
Prevention of Employment
Many employers seek to prevent their former employees from working for competitors after the employment relationship ends. However, non-compete clauses must not unduly burden the employee's ability to find new work.
Types of Non-Compete Clauses
Non-compete clauses can be divided into two main categories:
- Clauses that regulate any activity of a former employee for competing
- Clauses that restrict specific activities, such as soliciting former clients or using confidential information
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