Glossary / Labor & Employment Law

Non-compete clause

Under Swiss law, a post-contractual non-compete obligation is valid only within strict limits. It normally requires a written agreement, the employee’s access to customers or business secrets, and a risk of significant harm to the employer. Its scope must be reasonable in geography, duration, and subject matter. Courts may reduce excessive clauses. The restriction may lapse if the employer no longer has a substantial interest or if termination occurs in circumstances that make enforcement unfair.

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