The Waiver And Release Of Non Compete Obligations is typically used when an employer decides to release an employee from their post-employment competition restrictions in Germany. This situation commonly arises when the business determines that enforcing the non-compete is no longer necessary for protecting legitimate business interests, when there's a change in business strategy, or when negotiating an employee's departure. The document must comply with German law requirements, particularly the Handelsgesetzbuch (HGB) and Bürgerliches Gesetzbuch (BGB). It should clearly identify the original non-compete provisions being waived, specify the scope of the waiver, address any compensation matters, and ensure proper execution. This document is crucial for both parties as it provides legal certainty and can help avoid future disputes regarding post-employment obligations.
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1. Parties: Identification of the employer and employee/former employee, including full legal names, addresses, and roles
2. Background: Reference to the original employment agreement and non-compete provisions, including date of original agreement and relevant terms
3. Definitions: Key terms used in the waiver, including 'Non-Compete Obligations', 'Effective Date', and any other relevant defined terms
4. Waiver Declaration: Clear and unequivocal statement of the employer's waiver of the non-compete obligations
5. Scope of Waiver: Specific description of which obligations are being waived and the extent of the waiver
6. Effective Date: Specification of when the waiver becomes effective
7. Compensation Matters: Addressing any compensation due or being waived, including any compensation previously paid
8. Governing Law: Confirmation that the waiver is governed by German law
9. Execution: Signature blocks and execution requirements
1. Partial Waiver Provisions: Used when only certain aspects of the non-compete obligations are being waived while others remain in force
2. Surviving Obligations: Used to specify any obligations that survive the waiver, such as confidentiality obligations
3. Return of Compensation: Used when addressing the return of any non-compete compensation already paid
4. Third Party Rights: Used when the waiver needs to address rights of affiliated companies or other third parties
5. Severability: Used when there's a need to ensure partial validity in case certain provisions are found invalid
1. Original Non-Compete Agreement: Copy or extract of the relevant non-compete provisions from the original employment agreement
2. Specific Activities Schedule: Used when the waiver relates to specific activities or competitors while maintaining restrictions on others
3. Compensation Calculation: If relevant, detailed calculation of any compensation adjustments or returns
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