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Non Compete With Independent Contractor

Non Compete With Independent Contractor Generator for Germany

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Key Requirements PROMPT example:

Non Compete With Independent Contractor

"I need a Non Compete With Independent Contractor agreement under German law for a software development consultant who will have access to our proprietary AI algorithms and client data, with a focus on protecting our intellectual property across the European market."

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Document background
This Non-Compete With Independent Contractor agreement is specifically designed for use in Germany, where non-compete restrictions are heavily regulated and must meet specific legal requirements to be enforceable. The document is typically used when engaging independent contractors who will have access to sensitive business information, trade secrets, or valuable client relationships. It includes mandatory provisions for compensation (minimum 50% of previous earnings), maximum duration (2 years), and geographical scope of restrictions. The agreement balances the protection of legitimate business interests with the contractor's right to work, as required under German law. It's particularly important for high-level consultants, technical specialists, and other contractors who gain significant insight into the company's operations or intellectual property.
Suggested Sections

1. Parties: Identification of the contracting parties - the company and the independent contractor

2. Background: Context of the agreement, nature of the contractor's services, and legitimate business interests requiring protection

3. Definitions: Key terms including 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'

4. Scope of Services: Overview of the contractor's role and services that give rise to the non-compete obligations

5. Non-Compete Obligations: Specific competitive activities prohibited during and after the contract term, including geographical and customer restrictions

6. Duration of Restrictions: Temporal scope of the non-compete obligations (maximum 2 years under German law)

7. Compensation: Mandatory compensation for the non-compete period (minimum 50% of last received compensation under German law)

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Acknowledgments: Contractor's confirmation of the reasonableness of restrictions and receipt of adequate consideration

10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages

11. General Provisions: Standard clauses including governing law, jurisdiction, severability, and entire agreement

Optional Sections

1. Garden Leave: Optional provisions for paid non-work period during notice period - used when immediate removal from business is desired

2. Non-Solicitation: Additional restrictions on soliciting employees or customers - include when there's specific risk to customer relationships

3. Training and Special Knowledge: Details of special training or knowledge provided - include when justifying the non-compete based on transferred know-how

4. Reporting Obligations: Requirements to report new business activities during restriction period - include for high-risk situations

5. Reduction of Compensation: Provisions for reducing compensation if contractor earns income elsewhere - include when desired to offset compensation obligations

6. Early Termination of Non-Compete: Company's right to waive non-compete obligations - include when flexibility is desired

7. International Scope: Additional provisions for cross-border activities - include when contractor operates internationally

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed definition of geographical areas covered by non-compete restrictions

2. Schedule 2 - Compensation Calculation: Detailed formula and terms for calculating the non-compete compensation

3. Schedule 3 - Competitive Business Activities: Specific list of prohibited activities and competitor companies

4. Appendix A - Contractor's Current Business Interests: Declaration of contractor's existing business interests and commitments

5. Appendix B - Confidential Information Categories: Detailed categorization of protected confidential information

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
Affiliated Company
Business Relationship
Competitive Activity
Competitive Business
Confidential Information
Contractor
Customer
Effective Date
Company
Intellectual Property
Know-How
Non-Compete Period
Principal Business
Products
Professional Services
Restricted Period
Restricted Territory
Services
Termination Date
Trade Secrets
Compensation
Material Business Contact
Business Partner
Market Area
Proprietary Information
Strategic Information
Technical Data
Work Product
Key Customer
Relevant Industries

Technology

Professional Services

Manufacturing

Pharmaceuticals

Financial Services

Software Development

Management Consulting

Research and Development

Engineering

Healthcare

Biotechnology

Digital Marketing

Industrial Design

Telecommunications

Automotive

Relevant Teams

Legal

Human Resources

Procurement

Compliance

Finance

Operations

Research & Development

Information Technology

Business Development

Intellectual Property

Relevant Roles

Independent Consultant

Technical Specialist

Management Advisor

Software Developer Contractor

Project Manager Contractor

Design Consultant

Engineering Contractor

Strategy Consultant

IT Security Specialist

Research Scientist

Marketing Consultant

Business Development Contractor

Financial Advisor

Technical Architect

Product Development Specialist

Industries
German Commercial Code (Handelsgesetzbuch - HGB) §§ 74-75h: Regulates post-contractual non-compete agreements, including requirements for compensation (typically 50% of last received remuneration) and maximum duration (2 years)
German Civil Code (Bürgerliches Gesetzbuch - BGB) §§ 241, 242, 307: Provides framework for contractual relationships, good faith principles, and rules regarding general terms and conditions
Act Against Restraints of Competition (Gesetz gegen Wettbewerbsbeschränkungen - GWB): Sets boundaries for competitive restrictions and helps determine what constitutes reasonable restrictions in non-compete agreements
German Basic Law (Grundgesetz) Article 12: Guarantees freedom of occupation, which impacts the permissible scope of non-compete restrictions
German Trade Regulation Act (Gewerbeordnung - GewO) § 110: Contains provisions regarding employment relationships and can impact independent contractor agreements
German Fair Trade Law (Gesetz gegen den unlauteren Wettbewerb - UWG): Regulates unfair competition practices and helps define legitimate business interests that can be protected through non-compete agreements
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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