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Non Compete Non Solicitation Agreement Template for Switzerland

A legally binding agreement under Swiss law that restricts an employee's ability to compete with their former employer and/or solicit its employees, customers, or suppliers after the employment relationship ends. The agreement must comply with Articles 340-340c of the Swiss Code of Obligations, which requires restrictions to be appropriately limited in time and geography, and supported by legitimate business interests. The document includes specific provisions on scope, duration, territorial limits, and consideration, ensuring enforceability while balancing the employer's interests with the employee's right to economic freedom under Swiss law.

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What is a Non Compete Non Solicitation Agreement?

This Non-Compete Non Solicitation Agreement is essential for Swiss employers seeking to protect their legitimate business interests, trade secrets, and customer relationships. It is particularly relevant when employees have access to sensitive information or deep client relationships that could harm the business if used by competitors. The agreement must be carefully drafted to comply with Swiss law, specifically Articles 340-340c of the Swiss Code of Obligations, which requires restrictions to be reasonable in scope and supported by legitimate business interests. Typically used for key employees, senior management, and technical specialists, the document includes detailed provisions on restricted activities, geographical scope, duration, and any compensation for the restrictions. The agreement should balance the employer's need for protection with the employee's constitutional right to economic freedom under Swiss law.

What sections should be included in a Non Compete Non Solicitation Agreement?

1. Parties: Identification of the contracting parties (typically employer and employee/former employee)

2. Background: Context of the agreement, including the employment relationship and legitimate business interests being protected

3. Definitions: Key terms used in the agreement, including 'Confidential Information', 'Competing Business', 'Restricted Territory', 'Restricted Period', etc.

4. Non-Compete Obligations: Detailed restrictions on competitive activities, including scope, duration, and geographical limitations as per Swiss CO Articles 340-340c

5. Non-Solicitation Obligations: Restrictions on soliciting employees, customers, and business partners

6. Duration and Geographic Scope: Specific timeframe and territorial limits of the restrictions, ensuring compliance with Swiss law requirements

7. Consideration: Compensation or benefits provided in exchange for the restrictions

8. Exceptions and Permitted Activities: Activities explicitly allowed despite the general restrictions

9. Acknowledgments: Employee's confirmation of reasonableness and understanding of restrictions

10. Remedies: Consequences of breach, including any contractual penalties (Konventionalstrafe) and injunctive relief

11. General Provisions: Standard clauses including severability, governing law, and jurisdiction

12. Execution: Signature blocks and date of agreement

What sections are optional to include in a Non Compete Non Solicitation Agreement?

1. Garden Leave: Used when the agreement includes provisions for paid non-compete period immediately following employment

2. Post-Employment Cooperation: Include when ongoing cooperation is needed for transition or knowledge transfer

3. Return of Company Property: Add when there are specific items or information to be returned

4. Independent Legal Advice: Include when emphasizing the employee's opportunity to seek legal counsel

5. Monitoring and Reporting: Used when the employer requires periodic confirmation of compliance

6. Waiver Conditions: Include when specifying circumstances under which the employer may waive restrictions

7. Special Compensation Structure: Add when compensation for the non-compete is structured in installments or has special conditions

What schedules should be included in a Non Compete Non Solicitation Agreement?

1. Schedule 1 - Restricted Territory: Detailed list or map of geographical areas covered by restrictions

2. Schedule 2 - Competitor List: Specific companies or business types considered competitors

3. Schedule 3 - Protected Customers: List of customers covered by non-solicitation provisions

4. Schedule 4 - Compensation Details: Breakdown of any compensation specifically related to the restrictions

5. Appendix A - Confidential Information Categories: Detailed categorization of protected confidential information

6. Appendix B - Employee's Position and Access: Description of employee's role and access to justify restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Cost

Free to use

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