The Non-Compete Non Solicitation Agreement is a crucial document for businesses operating in Austria who wish to protect their legitimate business interests, trade secrets, and customer relationships. This agreement is typically used when onboarding senior employees, key technical staff, or those with access to sensitive business information. The document must strictly comply with Austrian labor law requirements, particularly regarding the maximum one-year restriction period and mandatory compensation provisions. It outlines specific restrictions on competitive activities, customer solicitation, and employee poaching, while ensuring enforceability under Austrian jurisdiction. The agreement is particularly relevant in today's highly competitive business environment where employee mobility and protection of business interests must be carefully balanced.
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1. Parties: Identification of the employer and employee/contractor parties to the agreement
2. Background: Context of the agreement, including the employment/business relationship between the parties
3. Definitions: Key terms including 'Confidential Information', 'Competitive Activity', 'Restricted Period', 'Restricted Territory', and 'Restricted Customers'
4. Duration and Scope: Specification of the time period (maximum 1 year under Austrian law) and geographical scope of restrictions
5. Non-Compete Obligations: Detailed description of prohibited competitive activities
6. Non-Solicitation of Customers: Restrictions on approaching or dealing with customers
7. Non-Solicitation of Employees: Restrictions on recruiting or hiring employees
8. Compensation: Mandatory compensation for the non-compete period (minimum 50% of last salary under Austrian law)
9. Exceptions and Permitted Activities: Activities explicitly allowed during the restricted period
10. Enforcement and Remedies: Legal consequences of breach and enforcement mechanisms
11. Governing Law and Jurisdiction: Specification of Austrian law application and competent courts
1. Garden Leave: Applicable if the agreement includes provisions for garden leave during the notice period
2. International Scope: Required if the restrictions extend beyond Austria, addressing cross-border enforcement
3. Industry-Specific Restrictions: Additional provisions specific to certain industries (e.g., technology, financial services)
4. Early Termination Rights: Conditions under which either party can terminate the restrictions early
5. Post-Termination Obligations: Additional obligations beyond non-compete and non-solicitation
6. Severability: Provisions for maintaining validity if certain clauses are found unenforceable
1. Schedule 1 - Restricted Territory: Detailed definition of geographical areas covered by restrictions
2. Schedule 2 - Restricted Customers: List or categories of customers covered by non-solicitation provisions
3. Schedule 3 - Compensation Calculation: Detailed framework for calculating the compensation during the restricted period
4. Appendix A - Competitive Business Activities: Detailed list of specific activities considered competitive
5. Appendix B - Confidential Information Categories: Categorization of confidential information covered by the agreement
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