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Non Compete Contract

Non Compete Contract Template for Austria

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Key Requirements PROMPT example:

Non Compete Contract

"I need a Non-Compete Contract for our Vienna-based software development company to protect our intellectual property and client relationships, applicable to senior developers and team leads who will have access to our proprietary code and enterprise client information, effective from March 2025."

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Document background
The Non-Compete Contract is a crucial document used in Austrian employment relationships to protect legitimate business interests after employment termination. It is particularly relevant when employees have access to sensitive information, trade secrets, or valuable client relationships. The agreement must strictly comply with Austrian labor law requirements, including the mandatory one-year maximum restriction period and appropriate compensation provisions. This document typically includes detailed definitions of restricted activities, geographical scope, compensation calculations, and enforcement mechanisms. The Non-Compete Contract is especially important in knowledge-intensive industries and for positions where employees could potentially harm the business by joining competitors or starting competing ventures.
Suggested Sections

1. Parties: Identification of the employer and employee/former employee, including full legal names and addresses

2. Background: Context of the agreement, including the employment relationship and legitimate business interests being protected

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

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and specific restrictions

5. Duration and Geographic Area: Specification of the time period (maximum 1 year under Austrian law) and geographical scope of restrictions

6. Compensation: Details of compensation for the non-compete obligation as required under Austrian law

7. Confidentiality Obligations: Provisions regarding the protection of confidential information and trade secrets

8. Acknowledgments: Employee's acknowledgment of reasonableness of restrictions and receipt of consideration

9. Notification Requirements: Employee's obligations to notify new employers and current employer's right to notify new employers

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

11. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes

Optional Sections

1. Garden Leave: Provisions for paid leave during notice period - include when dealing with senior executives

2. Customer Non-Solicitation: Additional restrictions on soliciting customers - include for client-facing roles

3. Employee Non-Solicitation: Restrictions on soliciting other employees - include for management positions

4. Return of Property: Provisions for returning company property - include when employee has access to significant company resources

5. Post-Termination Assistance: Requirements for transition assistance - include for key personnel positions

6. Severability: Provisions for partial enforcement if some restrictions are found invalid - include in high-risk situations

7. Stock/Equity Considerations: Impact on stock options or equity - include when employee has equity compensation

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by restrictions

2. Schedule 2 - Competitive Businesses: List of specific competitors or types of businesses considered competitive

3. Schedule 3 - Compensation Calculation: Detailed breakdown of compensation for non-compete obligations

4. Schedule 4 - Confidential Information: Detailed list of types of confidential information covered

5. Appendix A - Acknowledgment Form: Form for employee to acknowledge receipt and understanding of restrictions

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
Affiliate
Business
Company
Competitive Activity
Competitive Business
Confidential Information
Customer
Effective Date
Employee
Employer
Group
Intellectual Property Rights
Key Customer
Material Interest
Notice Period
Prospective Customer
Restricted Business
Restricted Period
Restricted Territory
Severance Payment
Termination Date
Trade Secrets
Compensation
Business Relationship
Protected Information
Competing Enterprise
Professional Services
Business Interest
Commercial Relationship
Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Pharmaceuticals

Biotechnology

Consulting

Software Development

Research and Development

Healthcare

Telecommunications

Engineering

Sales and Marketing

Media and Entertainment

Relevant Teams

Executive Leadership

Sales

Business Development

Research and Development

Product Development

Information Technology

Client Services

Operations

Marketing

Finance

Human Resources

Legal

Engineering

Analytics

Customer Success

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Business Development Manager

Research Scientist

Product Manager

Senior Consultant

Account Executive

Technical Lead

Department Head

Regional Manager

Financial Controller

Marketing Director

Operations Manager

Senior Analyst

Head of Research

Client Relations Manager

Industries
Austrian Civil Code (ABGB): Provides the fundamental framework for contractual relationships and general principles of contract law in Austria
Austrian Labor Law (Arbeitsrecht): Contains specific provisions regarding employment relationships and post-employment restrictions
Austrian Trade Regulation Act (Gewerbeordnung): Regulates business activities and contains provisions affecting competition restrictions
Section 36 of the Austrian White Collar Workers Act (Angestelltengesetz): Specifically regulates competition clauses in employment contracts, including maximum duration and compensation requirements
Austrian Competition Law (Kartellgesetz): Provides framework for acceptable competitive restrictions and anti-trust regulations
Austrian Data Protection Act (Datenschutzgesetz): Relevant for handling confidential information and trade secrets in the context of non-compete agreements
Austrian Constitution (Bundesverfassungsgesetz): Contains fundamental rights regarding freedom of employment and economic activity
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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