Competition clause – remuneration threshold 2023

A competition clause can limit the prospect of competitive employment for the period after the end of the employment relationship. For up to one year, the former employee may be prohibited from working in the same line of business no matter if self-employed or in other companies.

The prerequisite for an effective agreement is, among other things, that the employee’s remuneration exceeds a certain amount in the last month of the employment relationship. The respective remuneration threshold depends on when the agreement on the competition clause was concluded.

If the agreement date is after December 28^th, 2015, the remuneration threshold shall be calculated without special payments (Sonderzahlungen – e.g., Christmas and holiday bonuses). In the case of the lower remuneration limit for competition clauses that were concluded before this date, special payments have to be included pro rata. If the competition clause was agreed on before March 17^th, 2006, it is effective without having to reach a certain remuneration.

The remuneration thresholds are: