The Subcontractor Non-Solicitation Agreement is essential for businesses operating in Germany that engage external contractors or service providers. It serves to protect the company's workforce, client relationships, and business interests while remaining compliant with German legal requirements. This document is particularly crucial when subcontractors gain access to sensitive business relationships, key employees, or valuable client connections. The agreement must carefully balance protection of legitimate business interests with the constitutional right to freedom of occupation (Berufsfreiheit) under German law. Typically used in professional services, technology, and consulting sectors, it includes specific provisions for duration, geographic scope, and clear definitions of prohibited activities, all structured to ensure enforceability under German law.
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1. Parties: Identification of the contracting parties - the company and the subcontractor
2. Background: Context of the agreement, including the nature of the business relationship
3. Definitions: Key terms including 'Restricted Persons', 'Confidential Information', 'Business Relationship', and other relevant definitions
4. Scope of Non-Solicitation: Clear definition of prohibited solicitation activities, including employee, client, and supplier non-solicitation provisions
5. Duration and Geographic Scope: Temporal and territorial limitations of the non-solicitation obligations, ensuring compliance with German law restrictions
6. Legitimate Business Interest: Statement of the legitimate business interests being protected, as required under German law
7. Exceptions and Permitted Activities: Activities that are explicitly allowed and do not constitute breach of the agreement
8. Confidentiality Obligations: Obligations regarding the handling of confidential information obtained during the business relationship
9. Data Protection: GDPR compliance provisions regarding the handling of personal data
10. Remedies and Enforcement: Legal remedies available in case of breach, including potential liquidated damages (Vertragsstrafe)
11. General Provisions: Standard clauses including governing law, jurisdiction, severability, and entire agreement
1. Prior Relationships: Section addressing existing relationships with clients or employees - used when the subcontractor has pre-existing relationships that need to be carved out
2. Group Company Provisions: Extended provisions covering affiliated companies - used when the protection needs to extend to group companies
3. Non-Compete Obligations: Additional competition restrictions - used only when specifically agreed and necessary, with careful consideration of German law limitations
4. Training and Investment Protection: Provisions protecting company investments in subcontractor training - used when significant training or resources have been provided
5. Post-Termination Obligations: Specific obligations after the end of the business relationship - used when needed to clarify ongoing obligations
6. Alternative Dispute Resolution: Mediation or arbitration provisions - used when parties prefer alternative dispute resolution to court proceedings
1. Schedule 1 - Restricted Persons: Detailed list of specific employees, clients, or suppliers covered by the non-solicitation provisions
2. Schedule 2 - Territorial Scope: Detailed definition of the geographic areas where the non-solicitation obligations apply
3. Schedule 3 - Pre-Existing Relationships: List of carved-out relationships that are excluded from the non-solicitation obligations
4. Appendix A - Confidential Information: Detailed categorization of what constitutes confidential information under the agreement
5. Appendix B - Compliance Guidelines: Specific guidelines for ensuring compliance with the non-solicitation obligations
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