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Non Compete Non Circumvent Agreement for Germany

Non Compete Non Circumvent Agreement Template for Germany

A German law-governed agreement designed to protect business interests by preventing competitive activities and circumvention of business relationships. The document incorporates mandatory requirements under German law, including the provision of adequate compensation (typically 50% of previous benefits) for non-compete obligations. It sets out specific restrictions on competitive activities, customer and supplier relationships, and the use of confidential information, while ensuring compliance with German statutory limitations, including maximum duration of two years and reasonable geographical scope. The agreement balances the protection of legitimate business interests with employees' constitutional right to freely choose their occupation.

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Non Compete Non Circumvent Agreement

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What is a Non Compete Non Circumvent Agreement?

This Non Compete Non Circumvent Agreement is essential for businesses operating in Germany seeking to protect their legitimate interests, trade secrets, and business relationships. It is particularly relevant when engaging with employees, contractors, or business partners who have access to sensitive information or key business relationships. The agreement must comply with strict German legal requirements, including mandatory compensation for non-compete obligations (minimum 50% of previous benefits), maximum duration of two years, and reasonable geographical limitations. The document addresses both the prevention of competitive activities and the protection against circumvention of business relationships, while ensuring compliance with German employment law, trade secrets legislation (GeschGehG), and constitutional rights.

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

1. Parties: Identification of the contracting parties, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the restrictions

3. Definitions: Definitions of key terms including 'Confidential Information', 'Competing Activities', 'Territory', and 'Restricted Period'

4. Non-Competition Obligations: Specific restrictions on competitive activities, including scope, geography, and duration (maximum 2 years under German law)

5. Non-Circumvention Obligations: Prohibitions on circumventing the company's relationships with clients, suppliers, and business partners

6. Compensation: Mandatory compensation provisions (minimum 50% of previous benefits) as required by German law

7. Duration and Territory: Specific timeframe and geographical scope of restrictions, ensuring compliance with reasonable limitation requirements

8. Confidentiality Obligations: Protection of trade secrets and confidential information in accordance with GeschGehG

9. Acknowledgments: Parties' confirmation of reasonableness of restrictions and receipt of independent legal advice

10. Remedies: Available remedies in case of breach, including injunctive relief and damages

11. General Provisions: Standard clauses including notices, entire agreement, severability, and governing law

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

1. Group Company Provisions: Extended protections for group companies and affiliates, used when the protected party is part of a larger corporate group

2. International Provisions: Additional clauses for cross-border enforcement, used when parties operate in multiple jurisdictions

3. Post-Termination Obligations: Specific obligations following termination of primary relationship, used in employment contexts

4. Customer Protection: Specific provisions protecting customer relationships, used when customer relationships are particularly valuable

5. Training Compensation: Provisions regarding specialized training costs, used when significant training investment has been made

6. Garden Leave: Provisions for paid non-active period, used in senior employment contexts

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

1. Schedule 1 - Restricted Activities: Detailed list of specific activities that are prohibited

2. Schedule 2 - Territory: Detailed definition of geographical areas where restrictions apply

3. Schedule 3 - Compensation Calculation: Formula and details for calculating the mandatory compensation

4. Schedule 4 - Protected Customers: List of specific customers covered by non-circumvention provisions

5. Schedule 5 - Protected Suppliers: List of specific suppliers covered by non-circumvention provisions

6. Appendix A - Acknowledgment Form: Form for periodic acknowledgment of ongoing obligations

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 | Serial Founder & Legal AI Author

Jurisdiction

Germany

Cost

Free to use
Relevant legal definitions



































Clauses
































Relevant Industries

Technology

Manufacturing

Professional Services

Financial Services

Healthcare

Pharmaceuticals

Biotechnology

Consulting

Software Development

Research and Development

Engineering

Sales and Distribution

Telecommunications

Energy

Industrial Design

Relevant Teams

Legal

Sales

Business Development

Research & Development

Executive Leadership

Product Development

Client Services

Engineering

Operations

Strategic Partnerships

Innovation

Technical Services

Customer Success

Professional Services

Account Management

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Business Development Manager

Senior Engineer

Research Scientist

Product Manager

Key Account Manager

Technical Lead

Senior Consultant

Head of Innovation

Regional Manager

Strategic Partnership Manager

Senior Software Developer

Operations Director

Managing Director

Chief Financial Officer

Head of Research

Sales Manager

Business Strategy Consultant

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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