Non Hire Agreement Template for Austria

This document is an Austrian law-governed Non-Hire Agreement that establishes mutual obligations between parties to refrain from hiring or soliciting each other's employees. It complies with Austrian labor law and competition regulations, including the Austrian Labor Law (AVRAG) and Competition Act (Kartellgesetz). The agreement sets out specific temporal and geographical restrictions, defines protected employee categories, and includes enforcement mechanisms while ensuring compliance with constitutional employment rights and freedom of work principles under Austrian law.

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What is a Non Hire Agreement?

This Non-Hire Agreement is designed for use in business relationships where companies wish to protect their workforce from solicitation by business partners, clients, or other entities with whom they have significant interaction. The document is specifically tailored to comply with Austrian legal requirements, including constitutional employment rights, labor laws, and competition regulations. It is commonly used in service provider relationships, joint ventures, or business collaborations where one party gains significant exposure to the other's employees. The agreement includes specific provisions on duration, scope, and enforcement mechanisms, all carefully balanced to ensure enforceability under Austrian law while protecting legitimate business interests.

What sections should be included in a Non Hire Agreement?

1. Parties: Identification of the contracting parties with full legal names and addresses

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

3. Definitions: Definitions of key terms including 'Restricted Employees', 'Restricted Period', 'Group Companies', and other relevant terms

4. Non-Hire Obligations: Core provisions prohibiting the solicitation, hiring or engagement of specified employees

5. Duration and Territory: Specific timeframe and geographical scope of the restrictions, ensuring compliance with Austrian law

6. Exceptions: Permitted activities and circumstances where restrictions don't apply (e.g., general advertising)

7. Consideration: The consideration provided in exchange for the non-hire commitments

8. Remedies: Consequences of breach, including potential liquidated damages and injunctive relief

9. Severability: Provisions for maintaining validity if certain clauses are found unenforceable

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

11. Entire Agreement: Standard entire agreement clause

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Non Hire Agreement?

1. Group Company Provisions: Extended provisions covering group companies when parties are part of larger corporate groups

2. Confidentiality: Additional confidentiality provisions if not covered in a separate agreement

3. Data Protection: Specific GDPR compliance provisions when personal data processing is involved

4. Notice Provisions: Detailed notice requirements for specific situations or communications

5. Assignment: Rights and restrictions regarding assignment of the agreement

6. Industry-Specific Provisions: Additional provisions specific to regulated industries or special business sectors

7. Monitoring and Reporting: Procedures for monitoring compliance, used in high-risk or high-value situations

What schedules should be included in a Non Hire Agreement?

1. Schedule 1 - Restricted Employees: List of employee categories or specific roles covered by the agreement

2. Schedule 2 - Group Companies: List of affiliated companies covered by the agreement, if applicable

3. Schedule 3 - Territories: Detailed description of geographical territories covered by the restrictions

4. Appendix A - Notice Requirements: Forms and procedures for required notices under the agreement

5. Appendix B - Acknowledgment Form: Template for affected employees to acknowledge awareness 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

Jurisdiction

Austria

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use

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