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Non Compete Non Solicitation Agreement

Non Compete Non Solicitation Agreement Template for Austria

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Key Requirements PROMPT example:

Non Compete Non Solicitation Agreement

"I need a Non-Compete Non Solicitation Agreement under Austrian law for a senior software developer joining our tech startup in March 2025, with specific focus on protecting our AI algorithms and customer relationships in the DACH region."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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
Competitive Business
Competitive Activity
Confidential Information
Compensation
Customer
Effective Date
Employee
Employer
Group
Intellectual Property Rights
Material Interest
Prospective Customer
Protected Business
Restricted Activity
Restricted Business
Restricted Customers
Restricted Period
Restricted Territory
Services
Termination Date
Trade Secrets
Key Employee
Business Partner
Competitive Products
Competitive Services
Protected Information
Restricted Staff
Relevant Industries

Technology

Financial Services

Professional Services

Manufacturing

Pharmaceuticals

Biotechnology

Consulting

Software Development

Research and Development

Sales and Distribution

Healthcare

Engineering

Relevant Teams

Executive Leadership

Sales

Business Development

Research & Development

Product Development

Customer Relations

Technical Operations

Professional Services

Data Analytics

Engineering

Client Services

Strategic Planning

Information Technology

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Account Manager

Software Engineer

Research Scientist

Product Manager

Business Development Manager

Technical Lead

Senior Consultant

Financial Advisor

Managing Director

Head of Operations

Senior Sales Representative

Lead Developer

Data Scientist

Client Relations Manager

Industries
Austrian Labor Law (AVRAG): Regulates employment relationships and sets basic requirements for non-compete agreements, including maximum duration and compensation requirements
Austrian Commercial Code (UGB) § 36: Governs commercial relationships and contains specific provisions on competition restrictions in commercial contexts
Austrian Civil Code (ABGB) §§ 879, 1162: Contains general contract law principles and provisions on the validity of contractual restrictions
EU Competition Law (Article 101 TFEU): Sets boundaries for restrictions on competition within the EU market
Austrian Supreme Court Decisions (OGH): Relevant case law defining the scope and enforceability of non-compete and non-solicitation clauses
Austrian Wage Protection Act: Relevant for determining appropriate compensation for non-compete restrictions
Austrian Data Protection Act (DSG): Relevant for handling personal data in the context of employee monitoring and enforcement of the agreement
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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