Fixed-term employment contract and non-compete clauses

With the introduction of the Work and Security Act (WWZ) from 1 January 2015, the inclusion of a non-compete clause in an employment contract is permitted in indefinite contracts. Exception This main rule is subject to an exception which applies to all employment contracts concluded on or after 1 January 2015. A non-compete clause may be included in a fixed-term employment contract if the need for it is sufficiently justified. The justification must show that the non-compete clause is necessary because of compelling business or service interests. It can be seen from the words ‘necessary’ and ‘compelling business or service interests’ that this is a tough test. This is shown by a recent ruling of the [...]