Employee Non Compete Agreement Template for Denmark

An Employee Non-Compete Agreement is essential for Danish companies seeking to protect their legitimate business interests, trade secrets, and competitive advantage when key employees leave the organization. This document is particularly relevant in knowledge-intensive industries where employees have access to sensitive information or strong client relationships. Under Danish law, such agreements must provide specific compensation (40-60% of salary), cannot exceed 12 months duration, and must comply with the Danish Act on Non-Compete Clauses. The agreement should be used selectively for employees whose roles justify such restrictions, as it requires significant financial commitment from the employer through mandatory compensation payments.

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

2. Background: Context of the agreement, including the employee's position and reason for the non-compete

3. Definitions: Key terms used in the agreement, particularly defining 'competing business', 'competitive activities', and 'confidential information'

4. Scope of Non-Compete: Detailed description of prohibited activities, industry sectors, and geographical limitations

5. Duration: Time period for which the non-compete obligations will apply (maximum 12 months under Danish law)

6. Compensation: Details of the mandatory compensation (minimum 40-60% of salary) during the non-compete period

7. Payment Terms: Timing and method of compensation payments

8. Employee Obligations: Specific duties of the employee during the non-compete period, including reporting requirements

9. Enforcement: Consequences of breach and enforcement mechanisms

10. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction