The non-competition clause in Swiss law
31 Mar, 2023 by
The non-competition clause is an effective way to prevent an employee from using the knowledge acquired with the employer for the benefit of another company. Given the restrictions on the economic future of the employee, this clause is subject to strict conditions of validity.
The non-competition clause can have significant effects on the economic freedom of the employee. This is why it is subject to numerous conditions and restrictions.
This article develops the following topics:
- purpose of a non-competition clause
- form of the clause
- exercise of civil rights
- knowledge acquired by the employee within the company
- duration of the clause
- territorial scope of the clause
- excessive nature of the non-competition clause
- consideration of an indemnity
- consequences of a breach of the non-competition clause
- contractual penalty