The Non-Compete Agreement After Resignation is a crucial document used in German employment law contexts when a company needs to protect its legitimate business interests following an employee's departure. It becomes relevant when an employee with access to sensitive information, important client relationships, or valuable trade secrets resigns from their position. The agreement must comply with strict German legal requirements, including mandatory compensation (Karenzentsch盲digung) of at least 50% of the last contractual remuneration, a maximum duration of two years, and reasonable geographical and professional scope limitations. This document is particularly important in highly competitive industries or for positions involving access to confidential information, and must balance the employer's protection needs with the employee's constitutional right to freely choose their occupation under German law.
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1. Parties: Identification of the employer and the former employee, including full legal names and addresses
2. Background: Brief context of the employment relationship and circumstances of the resignation
3. Definitions: Key terms used in the agreement, particularly defining 'Competitive Activity', 'Competitive Business', and 'Territory'
4. Duration of Non-Compete: Specification of the non-compete period (maximum 2 years under German law)
5. Scope of Non-Compete: Detailed description of prohibited activities, industries, and geographical limitations
6. Compensation: Details of the mandatory compensation (minimum 50% of last contractual remuneration) and payment terms
7. Reduction of Compensation: Provisions regarding reduction of compensation in case of other employment during the restricted period
8. Confidentiality Obligations: Ongoing obligations regarding confidential information and trade secrets
9. Breach and Penalties: Consequences of breach, including potential contractual penalties (Vertragsstrafe)
10. Governing Law: Specification of German law as governing law and jurisdiction
11. Severability: Standard clause ensuring partial validity if individual provisions are found invalid
1. Customer Non-Solicitation: Additional restrictions on approaching former customers, if applicable to the role
2. Employee Non-Solicitation: Restrictions on recruiting former colleagues, if relevant to the position
3. Early Termination Rights: Employer's right to waive the non-compete obligation with notice
4. Post-Termination Assistance: Provisions for transition assistance or knowledge transfer
5. Return of Property: Specific provisions about company property return, if not covered in main employment termination
6. Garden Leave Credits: Treatment of any garden leave period in relation to the non-compete period
7. Special Industry Regulations: Additional provisions required for regulated industries or professions
1. Schedule 1 - Competitive Business Definition: Detailed list of specific competitors, products, or services considered competitive
2. Schedule 2 - Territorial Scope: Detailed maps or lists of geographical areas covered by the restriction
3. Schedule 3 - Compensation Calculation: Detailed breakdown of the compensation calculation, including base salary, bonuses, and benefits
4. Appendix A - Last Employment Contract: Reference copy of relevant sections from the last employment contract
5. Appendix B - Acknowledgment Form: Form for periodic acknowledgment of compliance with non-compete obligations
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