The Non-Compete Agreement For Contractors is essential for businesses operating in Austria who engage independent contractors in positions involving access to sensitive information, trade secrets, or valuable client relationships. This document is designed to protect legitimate business interests while remaining enforceable under Austrian law, which requires careful balance of employer protections and contractor rights. It is particularly relevant when contractors have access to proprietary information, client databases, or specialized knowledge that could provide competitive advantage if used by competitors. The agreement must comply with Austrian Civil Code (ABGB) requirements regarding reasonable restrictions in terms of duration, geographic scope, and business activities. It includes specific consideration provisions as required under Austrian law to ensure enforceability, and addresses both direct competition and indirect competitive activities through detailed scope definitions.
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1. Parties: Identification of the contracting parties - the company and the contractor, including full legal names and addresses
2. Background: Context of the agreement, nature of the contractor relationship, and reason for the non-compete provisions
3. Definitions: Key terms used throughout the agreement, including 'Competitive Activity', 'Confidential Information', 'Territory', and 'Restricted Period'
4. Scope of Non-Compete: Detailed description of prohibited competitive activities and specific limitations
5. Duration: Time period for which the non-compete obligations will remain in effect
6. Geographic Limitations: Specific geographic areas where the non-compete restrictions apply
7. Consideration: Compensation or benefit provided to the contractor in exchange for the non-compete obligations
8. Confidentiality Obligations: Provisions regarding the protection and non-disclosure of confidential information
9. Acknowledgments: Contractor's confirmation of the reasonableness of restrictions and receipt of consideration
10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages
11. Severability: Provisions ensuring survival of agreement if certain parts are found unenforceable
12. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes
1. Non-Solicitation: Additional restrictions on soliciting clients or employees, used when contractor has significant client or employee contact
2. Assignment Rights: Terms regarding the ability to transfer agreement rights, included when company may undergo corporate restructuring
3. Garden Leave: Provisions for paid non-compete period, used in high-level contractor relationships
4. Training and Trade Secrets: Specific provisions regarding specialized training or trade secrets, included when contractor receives significant proprietary knowledge
5. Post-Termination Cooperation: Terms for cooperation after contract ends, used when handover of work or clients may be needed
6. Alternative Dispute Resolution: Mediation or arbitration provisions, included when parties prefer alternative to court proceedings
1. Schedule A - Restricted Territory: Detailed map or list of geographic areas covered by non-compete restrictions
2. Schedule B - Competitive Business Activities: Comprehensive list of specific activities, companies, or business types considered competitive
3. Schedule C - Consideration Details: Breakdown of compensation or benefits provided in exchange for non-compete obligations
4. Appendix 1 - Confidential Information Categories: Detailed classification of information considered confidential under the agreement
5. Appendix 2 - Client List: List of specific clients covered by non-solicitation provisions (if applicable)
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