The Non-Compete Agreement After Termination is a crucial document used in Austrian employment relationships to protect an employer's legitimate business interests following an employee's departure. It is particularly relevant for employees who have access to sensitive information, trade secrets, or significant customer relationships. The agreement must comply with strict Austrian legal requirements, including a maximum restriction period of one year and mandatory compensation of at least 50% of the employee's last salary during the restricted period. This document helps prevent unfair competition while balancing the employer's need to protect business interests with the employee's right to pursue their profession. It typically includes detailed provisions about restricted activities, geographical scope, compensation structure, and enforcement mechanisms.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the agreement, including the employee's role and access to confidential information/trade secrets
3. Definitions: Key terms used in the agreement, including 'Competitive Activity', 'Restricted Period', 'Restricted Territory', and 'Confidential Information'
4. Duration of Restrictions: Specification of the non-compete period (maximum 1 year under Austrian law)
5. Scope of Restrictions: Detailed description of prohibited competitive activities and geographical limitations
6. Compensation: Details of the compensation to be paid during the restricted period (minimum 50% of last salary under Austrian law)
7. Employee Obligations: Specific duties and restrictions imposed on the employee during the restricted period
8. Exceptions and Permitted Activities: Activities that are explicitly allowed during the restricted period
9. Early Termination Provisions: Circumstances under which the non-compete obligations may be terminated or modified
10. Enforcement and Remedies: Legal consequences of breach and available remedies
11. Governing Law and Jurisdiction: Confirmation of Austrian law application and competent courts
12. Signatures: Execution block for both parties
1. Garden Leave: Provisions for garden leave period if applicable, reducing the post-termination restriction period
2. Industry-Specific Restrictions: Additional restrictions specific to certain industries or professional roles
3. Customer Non-Solicitation: Specific provisions preventing contact with customers, if separate from general non-compete
4. Employee Non-Solicitation: Provisions preventing the solicitation of other employees, if desired
5. Severability: Provisions for maintaining validity of remaining clauses if any clause is found invalid
6. Notice Requirements: Specific notification obligations during the restricted period
7. International Provisions: Additional clauses for employees working across multiple jurisdictions
1. Schedule A - Compensation Details: Detailed breakdown of the compensation structure during the restricted period
2. Schedule B - Restricted Territory: Detailed map or list of geographical areas covered by the restrictions
3. Schedule C - Competitive Businesses: List of specific competitors or types of businesses considered competitive
4. Schedule D - Confidential Information: Detailed description of the types of confidential information the employee had access to
5. Appendix 1 - Employee's Position Details: Description of employee's role, responsibilities, and access to sensitive information
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