Non-Compete Clause Enforceability in Mutually Agreed Termination with Reciprocal Concessions
Legislator summary
AI generatedThe court held that a non-compete clause does not lapse when an employment relationship is terminated by a mutually beneficial agreement with reciprocal concessions, meaning the agreement's validity is not negated simply because the employer initiated the separation, provided the employee also received significant benefits such as extended time for transition and funding for outplacement services. The lower court erred in concluding the clause became void based on the employer's primary interest in the separation; the appellate court found the exit agreement valid and enforceable, ultimately awarding the claimant a conventional penalty of CHF 22,000 for the proven breaches of the non-compete clause related to taking on specific audit mandates, while rejecting other claims.
Legislator headnote
OfficialArt. 340c Abs. 2 OR. Wird das Arbeitsverhältnis durch eine beidseits vorteilhafte Übereinkunft mit gegenseitigem Entgegenkommen beendet, fällt das Konkurrenzverbot nicht dahin. | OR (Obligationenrecht)
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AI generatedThis provision was cited in the Leitsatz (headnote) and implicitly used to determine the non-lapse of the non-compete clause following a mutual agreement.
This article was used to rule on court costs, stating that proceedings before the labor court and subsequent appeal procedures are free of charge.
Full text
Rechtsprechung Luzern
Instanz: · Obergericht
Abteilung: · I. Kammer
Rechtsgebiet: · OR (Obligationenrecht)
Entscheiddatum: · 25.03.2008
Fallnummer: · 11 07 116.2
LGVE:
Leitsatz: · Art. 340c Abs. 2 OR. Wird das Arbeitsverhältnis durch eine beidseits vorteilhafte Übereinkunft mit gegenseitigem Entgegenkommen beendet, fällt das Konkurrenzverbot nicht dahin.
Rechtskraft: · Diese Entscheidung ist rechtskräftig.