Non Compete Contract

Non Compete Contract Template for Denmark

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Document background

The Non-Compete Contract is essential for protecting a company's legitimate business interests in Denmark, including trade secrets, customer relationships, and competitive advantage. This document is typically used when an employee has access to sensitive information or key customer relationships that could significantly impact the business if used by competitors. The agreement must strictly comply with Danish law, which provides specific requirements for non-compete clauses, including mandatory compensation of at least 40% of salary and typically limiting restrictions to 12 months. The document should be used selectively for positions where restrictions can be justified by the employee's access to sensitive information or strategic importance to the business. The Non-Compete Contract must balance the employer's protection needs with employee rights under Danish law, requiring careful consideration of scope, duration, and compensation.

Suggested Sections

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

2. Background: Context of the agreement, including the employee's role and justification for the non-compete restrictions

3. Definitions: Key terms used in the agreement, particularly defining 'Competitive Activity', 'Competitive Business', and 'Restricted Territory'

4. Scope of Non-Compete Obligations: Detailed description of prohibited activities, industries, and businesses

5. Duration: Time period for the non-compete obligations, complying with Danish law maximum duration requirements

6. Geographic Scope: Definition of the territorial limits of the non-compete restrictions

7. Compensation: Details of the mandatory compensation as required by Danish law, including calculation method and payment schedule

8. Early Termination: Circumstances under which the non-compete obligations may be terminated early

9. Employee's Obligations: Specific duties of the employee during the restricted period, including reporting requirements

10. Breach and Remedies: Consequences of breach and available remedies

11. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction

Optional Sections

1. Non-Solicitation Provisions: Additional restrictions on soliciting customers or employees, used when business relationships need specific protection

2. Garden Leave: Provisions for paid leave during notice period, used for sensitive positions

3. Training Compensation: Provisions regarding specialized training costs, used when significant training investment is involved

4. Severability: Provisions for partial enforcement if parts are found invalid, used in complex agreements

5. Return of Company Property: Procedures for returning company materials, used when employee has access to sensitive materials

6. Monitoring and Compliance: Specific procedures for monitoring compliance, used in high-risk situations

Suggested Schedules

1. Schedule 1: Compensation Calculation: Detailed breakdown of compensation calculation method and examples

2. Schedule 2: Restricted Businesses: List of specific competitors and businesses considered competitive

3. Schedule 3: Restricted Territory: Detailed maps or lists of geographical areas covered by restrictions

4. Appendix A: Employee's Current Role and Responsibilities: Detailed description of current position justifying the restrictions

5. Appendix B: Notification Requirements: Templates and procedures for required notifications during the restricted period

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