Non-Compete | Non-Solicitation Clause

 

Do you need support with regard to a non-compete (non-solicitation) clause in a Employment / Labour Agreement in Switzerland?

Get in contact with Tonia Villiger, specialized Employment Lawyer via Tel. 043 535 00 85 / villiger(at)ad-voca.ch or Internet. We are looking forward to helping you.

 

What is a non-compete clause under Swiss employment law?

An employee with capacity to act may give the employer a written undertaking to refrain from engaging in any activity that competes with the employer once the employment relationship has ended and in particular to refrain from running a rival business for his own account or from working for or participating in such a business.

The prohibition of competition is binding only where the employment relationship allows the employee to have knowledge of the employer’s clientele or manufacturing and trade secrets and where the use of such knowledge might cause the employer substantial harm.

 

Are non-compete clauses enforceable in Switzerland?

The validity and enforceability of non-competition clauses / restrictive covenants strongly depend on the form, the wording, the reasons for the termination of the employment as well as other requirements. A strong non-competition clause may indeed prevent employees from taking up a new job, while a soft one is very difficult to enforce.

 

What are penalty payments?

In order for the employer to ease the enforceability of non-compete clauses, penalty payments may be agreed in an employment agreement / work contract. Normally, they can add up to a yearly salary. 

 

Is there a right to a monthly compensation?

The Swiss Law doesn't provide for monthly compensations for non-compete / restrictive covenants / non-solicitation obligations. However, they can be agreed in the employment contract. 

 

How do we proceed?

The analysis of an existing non-compete / non-competition clause includes the review of the clause in the employment agreement and the applicable regulations, the employment relationship as well as the reason of termination (CHF 200 - CHF 600). For negotiations an hourly rate will apply. Don't hesitate to contact us via Tel. 043 535 00 85 / villiger(at)ad-voca.ch or Internet.

Our law office is located in the center of Zurich city, Switzerland. Click here to read more about our collaboration.