Either a collective agreement provides that the non-competition clauses provide for a financial consideration and that each employment contract includes such a financial consideration, either the collective agreement allows employers to decide whether or not to provide a financial counterpart, and few employment contracts award compensation to laid-off/outgoing workers. In this case, the non-competition clause included in the shareholders` pact was overturned by the Supreme Court of France, as it did not include financial compensation. An appropriate duration of the non-competition ban would normally be in a period of 3 months to 2 years after the termination of the worker`s contract with the company. However, the collective agreement may, if necessary, provide for other restrictions over time. In France, a non-compete clause in an employment contract must provide for the payment of financial compensation to the outgoing worker as long as the employee remains bound to the terms and conditions of the clause and respects them. But when should the payment of compensation begin? Maybe sooner than you thought. The employer filed a complaint on the grounds that the agreement had been violated. If the worker`s contract contains a non-competition clause and the employer grants „garden leave“, that is.dem notice of dismissal of the worker, but excuses the worker during the notice period, the non-competition clause comes into force from the last effective work date, not from the actual date of dismissal. This means that the non-competition clause must be paid during the notice period, when the employee is already paying his full salary. Non-competition clauses must be provided in writing and agreed upon by the worker concerned, even if this is mentioned in an applicable collective agreement.
Indeed, the scope of the non-competition clause should not be too broad, so that it prohibits the worker, with his current qualification, from finding a new job. This geographical scope must be proportional to the worker`s workspace, for example. B it cannot be reasonably prohibited for an elevator service employee in the Paris market to work in France and the Benelux countries after the end of his contract. On the other hand, a non-competition clause applicable to the French and German markets could be proposed to a manager operating in the French and German markets. However, the scope of the clause should not be too broad, for example. B does not apply to all EU countries. In this regard, the employer is required to pay the worker`s full salary during the three months` notice in April, May and June – plus 50% of the average wage of the worker during the same period for non-competition obligations. (In other words, 150 per cent of the employee`s salary must be paid for 3 months).