Legislator Case Law & Legislation
11 07 116 2 • KG LU 11 07 116 2 AI generated

Non-Compete Clause Enforceability in Mutually Agreed Termination with Reciprocal Concessions

Case Number 11 07 116 2
Court / Authority
Jurisdiction Switzerland · Canton of Lucerne (CH-LU)
Decision Date
Outcome Partially Allowed
Court Costs No costs imposed

Legislator summary

AI generated

The 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

Official

Art. 340c Abs. 2 OR. Wird das Arbeitsverhältnis durch eine beidseits vorteilhafte Übereinkunft mit gegenseitigem Entgegenkommen beendet, fällt das Konkurrenzverbot nicht dahin. | OR (Obligationenrecht)

Keywords

AI generated
validity of non-compete clause termination agreement employment relationship concession effective clause in collective agreements bilateral contract

Cited Legislation

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Cited Case Law

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Key legal questions extracted by Legislator

AI generated
Art. 340c Abs. 2 OR

This provision was cited in the Leitsatz (headnote) and implicitly used to determine the non-lapse of the non-compete clause following a mutual agreement.

§ 67 AGG

This article was used to rule on court costs, stating that proceedings before the labor court and subsequent appeal procedures are free of charge.

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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.