Employer's Missteps Forfeited Non-Compete Clause

In a recent case in Denmark, an employer lost its right to obtain an injunction against a former employee performing consultancy work for a competitor.

The district court found that the employer had forfeited the opportunity to enforce the non-competition clause by not paying the required compensation, and the high court dismissed the appeal because the restricted period had expired.

If an employee is in breach of an agreed non-competition clause, the courts can, upon application by the employer, grant an interim injunction against the employee's employment or business activities if the employer can prove or establish that it has the right that is sought protected. The interim injunction must subsequently be followed by legal proceedings to determine whether or not the employee has breached the non-competition clause.