Non Compete Release Template for Germany

A Non-Compete Release agreement is utilized when an employer decides to waive or modify existing non-competition restrictions previously imposed on an employee. This document is particularly relevant in situations such as amicable separations, strategic business decisions, or when enforcement of the non-compete is no longer necessary or beneficial. Under German law, non-compete agreements and their release must be carefully drafted to ensure compliance with strict regulatory requirements, including those set forth in the German Commercial Code (HGB) and Civil Code (BGB). The release document typically includes specific details about the scope of obligations being released, any continuing obligations (such as confidentiality), and the effective date of the release. It's essential for both protecting the employer's legitimate business interests while enabling the employee's professional mobility.

1. Parties: Identification of the parties: the employer/company releasing the non-compete obligations and the employee being released

2. Background: Context of the original non-compete agreement, employment relationship, and circumstances leading to the release

3. Definitions: Key terms used in the agreement, including references to the original non-compete agreement and any relevant employment agreements

4. Release Declaration: Clear and unequivocal statement releasing the employee from specified non-compete obligations

5. Scope of Release: Detailed description of which non-compete obligations are being released and to what extent

6. Effective Date: Specification of when the release takes effect and any conditions precedent

7. Surviving Obligations: Specification of any obligations that remain in effect despite the release (e.g., confidentiality)

8. Representations and Warranties: Statements by both parties regarding their authority to enter into the release and understanding of its effects

9. Governing Law: Confirmation of German law as the governing law and jurisdiction for any disputes

10. Signatures: Execution block for all parties to sign, including date and place of signature