Non Compete Contract for Switzerland

Non Compete Contract Template for Switzerland

A Swiss Non-Compete Agreement is a legally binding document governed by Swiss law, specifically Articles 340-340c of the Swiss Code of Obligations, that restricts an employee from engaging in competitive activities after the termination of employment. The agreement must be in writing and typically includes specific geographical limitations, time restrictions (usually not exceeding three years), and may require appropriate compensation. The document outlines the scope of restricted activities, legitimate business interests being protected, and consequences of breach. Swiss law requires that such restrictions be reasonably limited in terms of place, time, and scope to protect legitimate employer interests while not unduly hindering the employee's economic future.

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What is a Non Compete Contract?

The Non-Compete Contract is essential for Swiss businesses seeking to protect their legitimate interests, including trade secrets, customer relationships, and specialized knowledge. This document is typically implemented when onboarding key employees or during significant role transitions where employees gain access to sensitive information. Under Swiss law, particularly the Swiss Code of Obligations, such agreements must be in writing and carefully balanced to protect employer interests while ensuring reasonable scope and duration. The agreement should specify the restricted activities, geographical scope, duration (maximum three years under Swiss law), and any compensation. It's particularly relevant when employees have deep insight into business operations, significant customer relationships, or access to confidential information. The document must comply with Swiss legal requirements for enforceability, including the principle that restrictions must not unfairly prevent the employee's economic advancement.

What sections should be included in a Non Compete Contract?

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

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

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

4. Scope of Non-Compete: Detailed description of prohibited activities, industry sectors, and roles

5. Geographic Scope: Specific territorial limitations of the non-compete obligation

6. Duration: Time period of the restriction, complying with Swiss law requirements for reasonable duration

7. Compensation: Details of any compensation provided for the non-compete obligation

8. Legitimate Business Interests: Specification of the employer's legitimate interests being protected

9. Exceptions: Circumstances under which the non-compete obligations do not apply

10. Remedies: Consequences of breach, including any contractual penalties (Konventionalstrafe)

11. Severability: Provision ensuring remainder of agreement remains valid if any part is found unenforceable

12. Governing Law and Jurisdiction: Confirmation of Swiss law application and competent courts

What sections are optional to include in a Non Compete Contract?

1. Garden Leave: Used when the employer wishes to include provisions about paid leave during the notice period

2. Customer Non-Solicitation: Additional restrictions on approaching customers, if relevant to the business

3. Employee Non-Solicitation: Additional restrictions on recruiting former colleagues, if needed

4. Post-Termination Assistance: Requirements for the employee to assist with handover or transitions

5. Special Termination Rights: Conditions under which either party can terminate the non-compete obligation

6. International Scope: Required for agreements covering activities in multiple countries

7. Training Costs Reimbursement: Included when the employer has made significant investments in employee training

What schedules should be included in a Non Compete Contract?

1. Schedule 1: Competing Businesses: Detailed list of specific competitors or competing business types

2. Schedule 2: Territory Map: Visual representation of the geographic scope of restrictions

3. Schedule 3: Compensation Calculation: Detailed formula or terms for calculating non-compete compensation

4. Schedule 4: Customer List: If applicable, list of customers covered by non-solicitation provisions

5. Appendix A: Confidential Information: Detailed description of protected confidential information and trade secrets

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

Jurisdiction

Switzerland

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Technology

Financial Services

Pharmaceutical

Manufacturing

Professional Services

Healthcare

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Industrial Engineering

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Relevant Teams

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Relevant Roles

Chief Executive Officer

Chief Technology Officer

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Industries
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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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