Employee Covenant Agreement for Switzerland

Employee Covenant Agreement Template for Switzerland

A comprehensive legal agreement governed by Swiss law that establishes and regulates the confidentiality, non-competition, and other protective obligations between an employer and employee. The document incorporates key provisions compliant with the Swiss Code of Obligations, including restrictions on post-employment activities, protection of confidential information, and intellectual property rights. It is designed to protect the employer's legitimate business interests while remaining enforceable under Swiss employment law, which generally takes a restrictive approach to post-employment restrictions.

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What is a Employee Covenant Agreement?

The Employee Covenant Agreement is a critical document used in Swiss employment relationships to protect an employer's legitimate business interests. It is particularly important when onboarding employees who will have access to sensitive information, key client relationships, or valuable intellectual property. This agreement, governed by Swiss law, typically includes provisions for confidentiality, non-competition, non-solicitation, and intellectual property rights assignment, all drafted within the parameters of Swiss employment law. The document is essential for positions involving access to trade secrets, senior management roles, technical positions, or client-facing roles where the protection of business relationships is crucial. The agreement must be carefully drafted to ensure enforceability under Swiss law, which generally takes a protective approach toward employee rights and places specific limitations on post-employment restrictions.

What sections should be included in a Employee Covenant Agreement?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the agreement, including the employee's role and relationship with the company

3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Intellectual Property', and 'Business'

4. Scope of Employment: Details of the employee's position, duties, and responsibilities

5. Confidentiality Obligations: Employee's obligations regarding confidential information during and after employment

6. Intellectual Property Rights: Assignment and protection of IP created during employment

7. Non-Competition: Post-employment competition restrictions, carefully drafted to comply with Swiss law limitations

8. Non-Solicitation: Restrictions on soliciting employees, customers, or suppliers

9. Return of Company Property: Obligations regarding the return of company property upon termination

10. Duration and Termination: Term of the agreement and circumstances for termination

11. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Employee Covenant Agreement?

1. Garden Leave: Provisions for placing employee on paid leave during notice period, used for senior positions

2. International Travel: Include for roles requiring international travel or assignments

3. Data Protection: Detailed data protection provisions, necessary when employee has access to personal data

4. Training and Development: Include when employer provides significant training investment

5. Severance Terms: Include for senior executives or when specific severance arrangements are agreed

6. Stock Options/Benefits: Include when employee is eligible for equity participation or special benefits

7. Remote Work Provisions: Include for positions allowing work from home or remote locations

What schedules should be included in a Employee Covenant Agreement?

1. Schedule 1 - Job Description: Detailed description of employee's role, responsibilities, and reporting lines

2. Schedule 2 - Compensation and Benefits: Details of salary, bonuses, and benefits package

3. Schedule 3 - Restricted Territory: Geographic scope of non-compete restrictions with specific details

4. Schedule 4 - Company Policies: List of applicable company policies the employee must comply with

5. Appendix A - Confidential Information: Detailed definition and examples of what constitutes confidential information

6. Appendix B - Intellectual Property Rights: Specific IP assignments and any pre-existing IP exclusions

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

Switzerland

Publisher

Genie AI

Cost

Free to use

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