1 during an employer-employee relationship

During the existence of an employer-employee relationship it is forbidden to the employee, without making its agreement for its employer competition. That means, the employee may not make business in the same field of activity of the employer for other persons or on own calculation.

With offence against the restraint of trade the employee the employer is opposite liable to pay damages. Also a notice can be perhaps justified.

Legal basis is (in the work contract the one which can be not explicitly specified) a Nebenpflicht from the work contract in accordance with "§ 242 BGB.

2 after completion of the employer-employee relationship

In principle the restraint of trade ends after completion of the employer-employee relationship. It can be agreed upon however in writing that the former employee may not make also after completion of the employer-employee relationship competition for the employer ("after-contractual restraint of trade"). Legal basis is "§ 110 trade and industrial regulations i.V.m. "§"§74 to 75f HGB. The restraint of trade can be for example a component of the work contract.

Conditions

• This is permissible only up to a maximum duration of 2 years. ("§ 74a exp. 1 sentence 3 HGB)
• In the agreed upon period the former employer must adjust this restriction by an appropriate monthly payment (at least half of the last content) ("§ 74 exp. 2 HGB)
• The employer must make a justified business interest valid (for example protection of trade secrets or its customer or supplier circle in accordance with "§ 74a exp. 1 sentence 1 HGB)
• Written agreement of the after-contractual restraint of trade (inclusive delivery of the document in accordance with "§ 74 exp. 1 HGB)
• No agreement with persons under age possible ("§ 74a exp. 2 HGB)
• The employer ("Prinzipal") can do before the completion of the service relationship without the restraint of trade expressed in the apron. This renouncement frees it however only after one year from the Karrenz payment obligation. ("§ 75a HGB)
• "§ 74b and 74c HGB regulates details of the

A noncommitment in accordance with "§ 74a exp. 1 HGB is present if the restraint of trade is disproportionate. (Example: A Bavarian brewery presents a restraint of trade for completely Germany to brewing master. Thus the progress of the brewing master inequitably made more difficult and thus also the restraint of trade is noncommittal.)

Related links

http://www.jobware.de/ra/rf/av/17.html

With restraints of trade with IT-self-employed persons (IT-Freelancern) there is a out-differentiated special right speaking: http://www.gulp.co.za/kb/lwo/vertrag/wettbewerbsverbot_schutzschrift.html

Articles in category "Restraint of trade"

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Related Websites

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• US CODE: Title 15,CHAPTER 1
  Trusts, etc., in restraint of trade illegal; penalty;