Three Legal Employment Contract Clauses which Your Firm can Use

In January 2016 new rules about competition-, costumer and recruiting clause came into force. The rules have made the law within the area clearer.

Your firm has great values. Through a good employment contract you can better protect these values. There are three legal clauses which your firm can use. That is competition clauses, costumer clauses, and recruiting clauses. Osloadvokatene can assist you with applying these in your employment contracts.

Competition Clauses

Competition clauses constitutes an employment contract between employee and employer which limits the employees rights to accede an position with a new employer or to start, run or take part in another business after the employment is terminated.

The validity of the competition clauses was previously regulated by the Norwegian agreement law (avtaleloven) § 38. Following the change in the law, competition clauses are regulated by the new chapter in the Norwegian employment act (arbeidsmiljøloven) chapter. 14 A.

The rules outlines the limitation of the employer’s permission to invoke the competition clauses. It is required that the employer has a’certain need’ to be protected against competition for the competition clauses to be invoked and take effect against the employee.

Further clear rules are outlined in relation to how the employee should be compensated for a competition clause to be invoked.

Customer Clauses

A customer clause is an agreement between employer and employee about limiting the employee’s right to contact the employer’s customers after the employment is completed.

It is only the employee’s right to contact the customer which can be limited with a customer clause. An employee will therefore not be obliged to reject a customer contacting the employee.

For the customer clause to be invoked, there are among others a requirement about the connection between the employee and the customer. The connection can either constitute that the employee and the customer has previously been in direct contact, or that the employee has had a responsibility for the customer. If the connection requirement is not satisfied, the customer clause will not be invoked and made effective for this customer.

Further it is only customers that the employee has had contact with or a responsibility for within the last year which can be affected by the customer clause.

It is also a requirement that the customer clause has been made in writing.

Recruiting Clauses

A recruiting clause is an agreement between employer and one or more businesses preventing or limiting the employer’s opportunity to take employment in another business.

The main rule is that it is not allowed to agree on recruiting clauses. From the main rule exceptions are made for the instances where there are negotiations about acquisitions. When acquisitions are a fact, it follows that it is allowed to agree to recruiting clauses.

Do you have any questions about clauses and employment contract?

Har du spørsmål?

Kontakt Osloadvokatene ved Advokat Kjersti Bolstad.