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Non Compete Agreement for Austria

Non Compete Agreement Template for Austria

This document is a Non-Compete Agreement governed by Austrian law, designed to protect an employer's legitimate business interests by restricting an employee's ability to compete after employment termination. The agreement must comply with Austrian labor law requirements, including a maximum duration of one year and mandatory compensation of at least 50% of the employee's last salary. The document outlines restricted activities, geographical scope, compensation terms, and enforcement mechanisms while ensuring compliance with both Austrian national law and EU regulations.

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What is a Non Compete Agreement?

A Non-Compete Agreement is essential for protecting an organization's confidential information, trade secrets, and client relationships in the Austrian business context. This document is typically used when onboarding senior executives, technical specialists, or employees with access to sensitive business information. It must strictly comply with Austrian labor law requirements, which mandate a maximum restriction period of one year and minimum compensation of 50% of the employee's last salary during the restricted period. The agreement should be implemented during the initial employment contract phase or as a separate agreement with appropriate consideration. The document needs to balance the employer's legitimate business interests with the employee's right to work, as Austrian courts closely scrutinize these agreements for reasonableness and enforceability.

What sections should be included in a Non Compete Agreement?

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

2. Background: Context of the employment relationship and legitimate business interests requiring protection

3. Definitions: Key terms including 'Competitive Activity', 'Restricted Territory', 'Confidential Information', and 'Business Interests'

4. Scope of Non-Competition: Detailed description of prohibited competitive activities, aligned with Austrian law requirements

5. Duration: Specification of the non-compete period (maximum 1 year under Austrian law)

6. Geographical Scope: Definition of the territorial boundaries where the restriction applies

7. Compensation: Details of the compensation for the non-compete period (minimum 50% of last salary under Austrian law)

8. Protection of Business Interests: Specification of legitimate business interests being protected

9. Breach and Remedies: Consequences of violation and available legal remedies

10. Severability: Provisions for partial validity if certain clauses are found unenforceable

11. Governing Law: Confirmation of Austrian law as governing law and jurisdiction

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

1. Garden Leave: Optional provisions for garden leave period, if applicable to the employment relationship

2. Non-Solicitation: Additional restrictions on soliciting employees or customers, if agreed

3. Training Costs Repayment: Include if there are specific training investments to be protected

4. Industry-Specific Restrictions: Additional provisions specific to certain industries or professions

5. International Scope: Additional provisions for employees working across multiple jurisdictions

6. Early Termination Rights: Conditions under which either party may terminate the non-compete obligation

7. Alternative Dispute Resolution: Optional mediation or arbitration provisions

What schedules should be included in a Non Compete Agreement?

1. Schedule 1: Restricted Territory Map: Detailed map or list of geographical areas covered by the restriction

2. Schedule 2: Compensation Calculation: Detailed breakdown of the compensation structure during the non-compete period

3. Schedule 3: Competitive Business List: Specific list of competitors or competing activities

4. Schedule 4: Confidential Information: Detailed list of protected confidential information and trade secrets

5. Appendix A: Employee's Position Details: Details of the employee's role, responsibilities, and access to sensitive information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Austria

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























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Relevant Industries

Technology

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Human Resources

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Relevant Roles

Chief Executive Officer

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

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