Restrictive Covenants In Employment Contracts are essential tools for protecting business interests in Switzerland, particularly in industries with significant intellectual property, client relationships, or trade secrets. This document is designed for use when an employer needs to protect legitimate business interests through legally enforceable post-employment restrictions. It incorporates Swiss legal requirements, including the mandatory provisions of the Swiss Code of Obligations, ensuring that restrictions are reasonable in terms of duration (typically maximum 3 years), geographical scope, and business activities. The agreement is particularly relevant for employees with access to sensitive information or significant client relationships, and includes provisions for appropriate compensation as required under Swiss law to make the restrictions enforceable.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the employment relationship and legitimate business interests being protected
3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competitive Activity', and 'Restricted Territory'
4. Scope of Restrictions: Detailed description of prohibited activities, including competition and solicitation restrictions
5. Duration of Restrictions: Time period for which the restrictions apply (typically maximum 3 years under Swiss law)
6. Geographical Scope: Clear definition of the geographical area where restrictions apply
7. Consideration: Compensation provided to the employee in exchange for the restrictions
8. Exceptions and Permitted Activities: Activities that are explicitly allowed despite the restrictions
9. Consequences of Breach: Penalties, remedies, and enforcement mechanisms for violation of the covenant
10. Severability: Provisions ensuring partial validity if certain clauses are found unenforceable
11. Governing Law and Jurisdiction: Confirmation of Swiss law application and competent courts
1. Garden Leave: Provisions for paid leave during notice period, used for senior executives or high-risk positions
2. Post-Employment Cooperation: Requirements for cooperation in business transition and litigation matters after employment ends
3. Industry-Specific Restrictions: Additional restrictions specific to particular industries or professional roles
4. Training Costs Repayment: Provisions for repayment of training costs, if applicable
5. Reduction of Restrictions: Mechanism for reducing restrictions if employee's role changes
6. Third Party Rights: Rights of group companies or affiliated entities to enforce restrictions
7. Monitoring and Reporting: Requirements for employee to report new employment or business activities during restricted period
1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas where restrictions apply
2. Schedule 2 - Compensation Details: Specific details of any compensation provided for the restrictions
3. Schedule 3 - Competitor List: Non-exhaustive list of known competitors for reference
4. Schedule 4 - Confidential Information: Detailed categories of confidential information covered by the agreement
5. Appendix A - Notice Requirements: Specific procedures for providing notices under the agreement
6. Appendix B - Acknowledgment Form: Form for employee to periodically acknowledge ongoing compliance with restrictions
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