Non Compete Agreement Template for Denmark

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Non Compete Agreement

Document background

This Non-Compete Agreement is designed for use in situations where an employer in Denmark needs to protect legitimate business interests by restricting an employee's ability to compete after employment termination. The document is essential for preserving confidential information, trade secrets, customer relationships, and other competitive advantages. It must strictly comply with Danish law, particularly the Salaried Employees Act and its 2016 amendments, which mandate minimum compensation of 40% of salary and maximum duration of 12 months. The agreement is commonly used for senior executives, sales professionals, and technical specialists who have access to sensitive business information or significant client relationships.

Suggested Sections

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

2. Background: Context of the agreement, including the employee's role and access to sensitive information

3. Definitions: Key terms used in the agreement, including 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and geographical limitations

5. Duration: Length of the non-compete obligation (maximum 12 months under Danish law)

6. Compensation: Details of the compensation for the non-compete period (minimum 40% of salary under Danish law)

7. Employee Obligations: Specific duties and restrictions during the non-compete period

8. Notice Requirements: Procedures for invoking the non-compete clause and required notifications

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

10. Enforcement: Consequences of breach and enforcement mechanisms

11. Governing Law: Confirmation of Danish law as governing law and jurisdiction

Optional Sections

1. Non-Solicitation Provisions: Additional restrictions on soliciting customers or employees (include if combined restrictions are needed, noting 6-month maximum combined duration under Danish law)

2. Garden Leave: Provisions for paid leave during notice period (include if applicable to the employment arrangement)

3. International Scope: Additional provisions for international operations (include if the employee works across multiple jurisdictions)

4. Industry-Specific Restrictions: Additional restrictions specific to particular industries (include for regulated industries or specific sector requirements)

5. Early Termination Rights: Conditions under which either party can terminate the non-compete obligations (include if flexibility is desired)

Suggested Schedules

1. Schedule 1 - Compensation Calculation: Detailed breakdown of the compensation structure during the non-compete period

2. Schedule 2 - Restricted Territory: Detailed description and/or maps of the geographical area covered by the non-compete

3. Schedule 3 - Competitive Businesses: List of specific competitors or types of businesses considered competitive

4. Appendix A - Notice Form: Template for the formal notice to invoke the non-compete clause

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