Non-Compete Clause Upheld
CK - Washington. Under German law, non-competition clauses require ongoing
payments for their validity beyond the term of employment. In a recent matter involving such a provision that lacked a specific mention of
consideration, the Federal Supreme Court for Employment Matters, Bundesarbeitsgericht, docket number 10 AZR 407/05, upheld the clause because the carefully drafted language of the contract validly meshed with the statutory
scheme so that the statute supplied the compensation scheme.
The Recht und Alltag blog discusses an unusual factual aspect in that
case: The emplo...