Document background
The Non-Compete in Severance Agreement is essential in situations where an employer, operating under Swiss jurisdiction, needs to protect its legitimate business interests while negotiating an employee's departure. This document is typically used when terminating employment relationships with key personnel who have had access to sensitive information, trade secrets, or valuable client relationships. The agreement must comply with Swiss law, particularly Articles 340-340c of the Swiss Code of Obligations, which set specific requirements for non-compete clauses including reasonable temporal, geographical, and substantive limitations. The document combines severance benefits as consideration for the employee's commitment to non-compete obligations, typically including detailed provisions about restricted activities, duration, territorial scope, and consequences of breach. It's particularly crucial for senior positions where the potential impact of competitive activities could significantly affect the employer's business interests.
