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Non-Compete Agreements under German law are essential tools for protecting business interests when employees depart. These agreements are particularly crucial for roles involving access to sensitive information, key client relationships, or specialized knowledge. The document must strictly comply with German legal requirements, including mandatory compensation of at least 50% of the employee's last contractual benefits and a maximum duration of 2 years. Unlike many other jurisdictions, German law places significant emphasis on employee protection, requiring careful balance between business protection and employee rights. The agreement typically includes detailed definitions of restricted activities, geographical scope, and compensation terms, while ensuring compliance with both the German Commercial Code (HGB) and constitutional employment rights.

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and reason for the non-compete agreement

3. Definitions: Clear definitions of key terms, particularly 'Competitive Activity', 'Competitive Business', and 'Territory'

4. Scope of Non-Competition: Detailed description of prohibited activities, industry sectors, and geographical limitations (must be reasonable under German law)

5. Duration: Period of the non-compete obligation (maximum 2 years under German law)

6. Compensation: Mandatory compensation details (minimum 50% of last contractual benefits) including calculation method and payment terms

7. Confidentiality Obligations: Protection of trade secrets and confidential information during and after employment

8. Notification Requirements: Employee's obligation to inform about new employment or business activities

9. Early Termination: Conditions under which either party may terminate the non-compete obligation

10. Legal Consequences of Breach: Consequences and potential penalties for violating the agreement

11. Severability: Clause ensuring partial validity if certain provisions are found unenforceable

12. Governing Law and Jurisdiction: Confirmation of German law application and competent courts