Considerations on how to draft a non-compete restriction, June 2013
During the employment, both the employer and the employee are bound by a mutual duty of loyalty, which is a basic principle on the labor market and forms part of the employment relationship. The duty of loyalty on the employee’s behalf implies a non-compete obligation towards the employer. However, since the duty of loyalty does not apply post employment, the employer must have included an explicit contractual obligation for the employee not to compete with the employer after the employment has ceased; should the employer consider this to be important.