Document background
The Employee Non-Compete Agreement is essential for Swiss businesses seeking to protect their legitimate interests, including trade secrets, customer relationships, and specialized knowledge. This document becomes particularly crucial when employees have access to sensitive information or maintain significant client relationships that could pose competitive risks if transferred to a competitor. Under Swiss law, such agreements must be carefully drafted to comply with Articles 340-340c of the Swiss Code of Obligations, which requires reasonable limitations in terms of geography, time, and scope, along with appropriate compensation for the restrictions imposed. The agreement should be implemented selectively for key positions where the protection of business interests justifies post-employment restrictions.
