Section 14 A-1 Non-compete clauses

(1) For the purpose of this chapter, Șnon-compete clauseș means an agreement between the employer and the employee limiting the employee's freedom to take up a post at another employer or to commence, operate or participate in other undertakings following termination of the employment.

(2) A non-compete clause may only be invoked as far as is necessary in order to safeguard the employer's particular need for protection against competition. The clause may not in any event be invoked for longer than one year from termination of the employment.

(3) In order to be valid, a non-compete clause must be entered into in writing.

(4) A non-compete clause may not be invoked on dismissal by the employer unless the dismissal is objectively justified on the basis of circumstances relating to the employee. The same applies if the employer owing to breach of obligations in the employment relationship has given the employee reasonable grounds to terminate the employment.

(5) The employer may terminate a non-compete clause in writing at any time during the employment. Such termination may not however occur during the period when the employer is bound by a statement pursuant to section 14 A-2, fifth paragraph. Following termination of the employment, the employer and the employee may enter into a written agreement that a non-compete clause shall no longer apply.

(6) A non-compete clause becomes void if the requirement regarding a statement pursuant to section 14 A-2 is not met.