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Non Competition Non Solicitation And Confidentiality Agreement for Germany

Non Competition Non Solicitation And Confidentiality Agreement Template for Germany

This agreement, governed by German law, combines three critical protective measures for businesses: non-competition, non-solicitation, and confidentiality provisions. It is specifically structured to comply with German legal requirements, including mandatory compensation for non-compete restrictions (Karenzentschädigung), and incorporates GDPR compliance measures. The agreement restricts former employees from competing activities, soliciting customers or employees, and disclosing confidential information, while ensuring compliance with German Constitutional rights regarding freedom of occupation and maintaining reasonable temporal and geographical limitations as required by German courts.

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What is a Non Competition Non Solicitation And Confidentiality Agreement?

The Non Competition Non Solicitation And Confidentiality Agreement is essential for German employers seeking to protect their legitimate business interests, trade secrets, and customer relationships. This document is typically used when onboarding senior employees, key technical staff, or those with access to sensitive information or significant customer relationships. It must comply with strict German legal requirements, particularly regarding the mandatory waiting allowance (Karenzentschädigung) for non-compete provisions, which must be at least 50% of the employee's last contractual benefits. The agreement also needs to balance the employer's protective interests with the employee's constitutional right to freedom of occupation under German law, while ensuring GDPR compliance for data protection aspects.

What sections should be included in a Non Competition Non Solicitation And Confidentiality Agreement?

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

2. Background: Context of the agreement, relationship between parties, and purpose of the restrictions

3. Definitions: Key terms including Confidential Information, Competitive Activity, Territory, Restricted Period, and Customer/Employee definitions

4. Confidentiality Obligations: Detailed provisions regarding the protection, use, and non-disclosure of confidential information

5. Non-Competition Provisions: Scope of competitive restrictions, including geographical and temporal limitations, and mandatory waiting allowance (Karenzentschädigung)

6. Non-Solicitation Provisions: Restrictions on soliciting employees, customers, and business partners

7. Compensation and Waiting Allowance: Details of the mandatory compensation (at least 50% of last received contractual benefits) for non-compete restrictions

8. Duration and Territorial Scope: Specific timeframes and geographical limitations for restrictions

9. Return of Confidential Information: Obligations regarding the return or destruction of confidential materials

10. Data Protection: GDPR compliance provisions and data handling requirements

11. Breach and Remedies: Consequences of breach, including contractual penalties (Vertragsstrafe) and injunctive relief

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

13. Governing Law and Jurisdiction: Specification of German law application and competent courts

What sections are optional to include in a Non Competition Non Solicitation And Confidentiality Agreement?

1. Garden Leave: Optional provisions for paid leave during notice period, to be included if immediate separation is desired

2. Training Costs Repayment: Include when the employee has received specialized training and cost recovery is desired

3. Post-Termination Assistance: Include when ongoing assistance may be needed after employment ends

4. Intellectual Property Rights: Include when the role involves creation of IP or technical innovations

5. Third Party Rights: Include when affiliates or group companies need protection under the agreement

6. Alternative Dispute Resolution: Include when parties prefer mediation or arbitration before court proceedings

What schedules should be included in a Non Competition Non Solicitation And Confidentiality Agreement?

1. Schedule 1 - Defined Competitors: List of specific competing businesses or organizations covered by non-compete provisions

2. Schedule 2 - Protected Customers: List of customers covered by non-solicitation provisions

3. Schedule 3 - Confidential Information Categories: Detailed categorization of confidential information types

4. Schedule 4 - Compensation Calculation: Detailed calculation method for waiting allowance and compensation

5. Appendix A - Data Processing Requirements: Specific GDPR-compliant data handling procedures and requirements

6. Appendix B - Exit Procedures: Procedures for return of confidential information and verification of compliance

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

Germany

Publisher

Genie AI

Cost

Free to use

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