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Non-compete after notice: invalid without compensation

Your employment contract states that after you leave you may not move to a competitor? Such a post-contractual non-compete is only valid under strict requirements, and above all it needs compensation for the period of the restriction.

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A post-contractual non-compete is only valid if the employer pays you compensation of at least half your last received benefits for the duration of the ban (§§ 74 ff. HGB), and the ban is agreed in writing.
A non-compete without (sufficient) compensation is non-binding; you can then choose whether to abide by it. It may last at most two years and must protect legitimate business interests.

What you should do now

  1. 1

    1. Check the clause

    Is compensation of at least 50 % agreed, and is the ban in writing?

  2. 2

    2. Look at the scope

    Duration (max. 2 years), geographic and subject-matter scope; is that appropriate?

  3. 3

    3. Clarify the options

    Without sufficient compensation the ban is non-binding; with compensation you must observe it.

  4. 4

    4. Advice

    Before changing jobs, have the validity checked by a lawyer; violations can get expensive.

Frequently asked questions

Is a non-compete without payment valid?

No. A post-contractual non-compete is only binding if the employer promises compensation of at least half the last received contractual benefits (§§ 74 ff. HGB). If sufficient compensation is missing, the ban is non-binding, and you can choose whether to abide by it.

How long may a non-compete last?

At most two years after the end of the employment relationship. It must also serve to protect the employer's legitimate business interests and may not unfairly hinder your professional advancement. Before moving to a competitor, you should have the clause checked legally.

Take action now

We put together the ready-made texts and the right places to contact for you.

General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.