Non-Competition Clause Template
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In view of the Employee's duties, the strategic economic, commercial and technical information to which he/she has access, and the privileged links developed with the clientele of Name of your company, the Employee undertakes, in the event of termination of the present contract to:
- enter the service of a company operating in competition with Company name, particularly in the field of Company activity, or any future competitor;
- solicit or canvass any of Company name customers;
- directly or indirectly accept orders, enter into contracts or negotiate with any natural or legal person who, at the date of termination of the present contract, is a customer of Company name;
- seek to influence in any way whatsoever the relationship between Company name and its customers, suppliers or employees,
As defined in this section, the term "Customer" includes on a given date (1) any customer of Company name on that date, (2) any person who was a customer of Company name during the two years preceding that date and (3) any potential customer to whom Company name has offered its services during the 180-day period preceding the said date or the date of termination of this Agreement, if later.
In view of the particularly sensitive and secret nature of the information to which the Employee will have access in the course of his duties, the provisions of this clause will apply for a period of 12 months from the termination of the present contract, whatever the nature of the termination of the contract.
This prohibition covers your company's entire Commercial zone.
In consideration of the non-competition obligation provided for above, the Employee will receive, after the effective termination of his contract and for the duration of this prohibition, a monthly indemnity equal to 33% of the last monthly base salary excluding bonuses, mentioned in the Remuneration article. It is expressly noted that this non-competition indemnity is subject to social security contributions, CSG/CRDS and tax.
If you fail to comply with this clause, Company name will be released from its commitment to pay the financial compensation from the date on which the clause was breached. In addition, Company name reserves the right to sue the Employee and/or the co-responsible third parties for compensation for the damage suffered, and to obtain a court order for the cessation of the competitive activity.
Company name may, however, release the Employee from the prohibition on competition in the event of termination of the contract, of whatever nature. This release must be made in writing at the time of termination, at the latest within 15 days of notification of termination of the contract.
If any of the restrictions provided for in this article should, for any reason whatsoever, be declared invalid by a competent court, the validity and binding force of the other restrictions shall not be affected.