Post-termination Restrictions
Adjust post-termination restrictions before January 1,
2017: A reminder that new rules were introduced last year,
which regulate post-termination non-competition and
non-solicitation clauses. Non-compliance makes the restriction(s)
invalid.
The changes have retroactive effect so existing restrictions in
contracts agreed before 2016 must be amended to be valid. This is
critical for key employee contracts.
The changes include:
- Non-compete and non-solicitation
provisions cannot apply for more than one year
post-termination.
- An employee must receive compensation
for the duration of the non-compete, unless the employer actively
waives reliance in the required manner. The amount is: (a) 100% of
salary, up to 8 times the Norwegian National Insurance Basic Amount
(currently NOK 92 576); and above that (b) 70 % (reduced) of salary
up to 12 times the National Insurance Basic Amount.
