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Subcontractor Non Compete Agreement Template for Denmark

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Subcontractor Non Compete Agreement

Document background
The Subcontractor Non-Compete Agreement is essential for businesses operating in Denmark that engage external contractors while needing to protect their legitimate business interests. This document is typically used when a company wishes to prevent a subcontractor from competing directly or indirectly with their business during and after the engagement period. It must comply with Danish legal requirements, including reasonable limitations on duration and scope, and mandatory compensation provisions. The agreement includes detailed definitions of restricted activities, geographical limitations, and specific protections for confidential information and trade secrets. It's particularly important to note that under Danish law, non-compete restrictions must be carefully balanced with fair competition principles and worker mobility rights.
Suggested Sections

1. Parties: Identification of the main contracting party (company) and the subcontractor, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, nature of the subcontractor relationship, and reason for the non-compete provisions

3. Definitions: Key terms including 'Confidential Information', 'Competing Activities', 'Territory', 'Restricted Period', and 'Business Area'

4. Scope of Non-Compete: Detailed description of prohibited activities, specific industry sectors, and business areas covered by the restriction

5. Duration and Territory: Time period and geographical area of the non-compete restrictions, ensuring compliance with Danish reasonable limitation requirements

6. Compensation: Details of compensation for the non-compete restriction, as required under Danish law

7. Exceptions and Permitted Activities: Activities and circumstances explicitly allowed under the agreement

8. Confidentiality Obligations: Obligations regarding confidential information and trade secrets

9. Breach and Remedies: Consequences of breach, including potential penalties and enforcement mechanisms

10. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

Optional Sections

1. Non-Solicitation Provisions: Additional restrictions on soliciting clients or employees, if relevant to the business relationship

2. Post-Termination Obligations: Specific obligations that continue after the end of the main subcontractor agreement

3. Reporting Requirements: Obligations to report new business activities during the restricted period

4. Survival Clause: Specification of which provisions survive termination of the main agreement

5. Assignment and Transfer: Rules regarding the transfer of rights and obligations under the agreement

6. Severability: Provisions for maintaining validity if certain clauses are found unenforceable

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific activities, companies, or business areas covered by the non-compete

2. Schedule 2 - Compensation Calculation: Detailed breakdown of compensation calculation and payment terms

3. Schedule 3 - Territory Definition: Detailed description or maps of geographical areas covered by the restriction

4. Appendix A - Main Services Agreement Reference: Reference to or summary of the main subcontractor agreement

5. Appendix B - Competitive Business List: List of specific competitors or competing businesses covered by the restriction

Authors

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Relevant Industries
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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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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