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Not To Compete Agreement

Not To Compete Agreement Template for Switzerland

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Key Requirements PROMPT example:

Not To Compete Agreement

"I need a Not To Compete Agreement for a senior software engineer in our Zurich office who has access to our proprietary AI algorithms and client data, with a two-year restriction period starting from March 2025 and covering Switzerland and neighboring EU countries."

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Document background
The Not To Compete Agreement is a crucial document for Swiss employers seeking to protect their legitimate business interests from competition by former employees. This agreement becomes particularly relevant when employees have access to sensitive information, trade secrets, customer relationships, or specialized knowledge that could be detrimental to the employer if used by a competitor. Under Swiss law, such agreements must carefully balance employer protection with employee rights to economic freedom. The agreement typically includes specific restrictions on geographical area, time period (not exceeding 3 years), and scope of activities, along with any compensation for the restriction period. It must comply with Articles 340-340c of the Swiss Code of Obligations and related jurisprudence to be enforceable.
Suggested Sections

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, including the employee's role and access to sensitive information

3. Definitions: Key terms used in the agreement, including 'Competitive Activity', 'Restricted Territory', 'Confidential Information'

4. Scope of Non-Compete: Detailed description of prohibited activities, including specific industry sectors and roles

5. Geographic Restrictions: Define the territorial scope of the non-compete obligation (must be reasonable under Swiss law)

6. Duration: Time period of the restriction (maximum 3 years under Swiss law)

7. Consideration: Compensation or benefits provided in exchange for the non-compete obligation

8. Confidentiality Obligations: Protection of trade secrets and confidential information

9. Notice and Garden Leave: Requirements for notice period and any garden leave provisions

10. Remedies for Breach: Consequences of violating the agreement, including potential penalties and injunctive relief

11. Severability: Provision ensuring that if any part is found invalid, the rest remains enforceable

12. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

Optional Sections

1. Post-Employment Reporting: Requirements for the employee to report new employment during the restricted period

2. Customer Non-Solicitation: Additional restrictions on approaching customers, if applicable to the role

3. Employee Non-Solicitation: Restrictions on recruiting other employees, if relevant to the position

4. Early Termination Provisions: Conditions under which the non-compete may be terminated early

5. Training Costs Repayment: Provisions for repayment of training costs, if significant training was provided

6. Monthly Compensation: Details of ongoing payments during the non-compete period, if applicable

7. Industry-Specific Restrictions: Additional provisions specific to certain industries (e.g., financial services, technology)

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by the restriction

2. Schedule 2 - Competitive Businesses: List of specific competitors or competing businesses covered by the restriction

3. Schedule 3 - Compensation Details: Breakdown of any compensation or benefits related to the non-compete

4. Appendix A - Confidential Information: Detailed description of the types of confidential information covered

5. Appendix B - Employee's Position and Duties: Detailed description of the employee's role and responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Competitive Activity
Confidential Information
Restricted Period
Restricted Territory
Trade Secrets
Business Relationship
Customer
Competing Business
Group Company
Intellectual Property
Material Interest
Professional Services
Restricted Products/Services
Senior Employee
Termination Date
Business Day
Compensation
Garden Leave
Legitimate Business Interests
Material Breach
Protected Information
Proprietary Rights
Key Personnel
Strategic Information
Swiss Business Hours
Associated Company
Direct Competition
Indirect Competition
Market Sector
Relevant Industries

Technology

Financial Services

Pharmaceutical

Manufacturing

Professional Services

Healthcare

Biotechnology

Consulting

Research and Development

Software Development

Industrial Engineering

Investment Banking

Insurance

Telecommunications

Chemical Industry

Relevant Teams

Executive Leadership

Research & Development

Sales

Product Development

Information Technology

Business Development

Client Services

Engineering

Data Science

Marketing

Operations

Finance

Legal

Human Resources

Strategy

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Research Director

Sales Director

Business Development Manager

Product Manager

Senior Consultant

Investment Banker

Technical Lead

Head of Research

Chief Financial Officer

Senior Account Manager

Regional Sales Manager

Head of Operations

Chief Marketing Officer

Lead Data Scientist

Senior Project Manager

Industries
Swiss Code of Obligations (CO) Art. 340: Main provision governing non-compete agreements, establishing basic requirements for validity including written form requirement
Swiss Code of Obligations (CO) Art. 340a: Defines limitations on non-compete clauses including geographic, temporal and activity restrictions
Swiss Code of Obligations (CO) Art. 340b: Regulates consequences of breaching non-compete agreements and penalty provisions
Swiss Code of Obligations (CO) Art. 340c: Specifies circumstances under which non-compete obligations expire
Swiss Federal Constitution Art. 27: Guarantees economic freedom, which influences the interpretation and enforcement of non-compete restrictions
Swiss Federal Act on Unfair Competition (UCA): Relevant for protecting legitimate business interests and trade secrets, which justify non-compete restrictions
Swiss Data Protection Act (DPA): Considerations for handling personal data and confidential information in connection with non-compete obligations
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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