Non-Competition Clauses In Employment Law: New Developments

Employers frequently use non-competition clauses in employment contracts to protect their manufacturing or commercial secrets and/or their particular relationship with their clients after employees cease working for them. This Newsletter provides an overview of the latest case-law developments in this field, taking into account some recent rulings of the cantonal courts, as well as the Swiss Supreme Court.

1. INTRODUCTION

Depending on their activity, employers have a legitimate interest in ensuring that former employees who have just ceased working for them refrain from exploiting the knowledge they have acquired during their employment. The inclusion of a post-termination non-competition clause in an employment contract may provide employers with additional protection to that provided by the usual obligation not to reveal confidential information, which already exists in law (art. 321a par. 4 CO and art. 162 CP). By accepting a non-competition clause, employees