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Something is Rotten in the State of Denmark

Something is Rotten in the State of Denmark

Well, possibly not that dramatic, but there are big changes afoot.

From 1 January this year, Denmark introduced new laws dealing with post-employment restrictive covenants (such as non-compete, non-solicitation and non-poaching clauses).

The new rules apply to all clauses concluded from 1 January 2016.

Most importantly, non-compete and non-solicit restrictions will need to paid for at varying rates of up to 60% of the employee’s normal remuneration prior to termination.

There are now also maximum time limits in respect of which such restrictions can operate (being 12 months post-employment if there is a non-compete or a non-solicit, and up to 6 months if there are both).

In addition, non-solicitation of customers clauses can only apply in respect of customers who the employee personally dealt with during the last 12 months of employment; non-compete clauses can only apply to certain senior level employees.

Non-solicitation of/non-dealing with employee restrictions are no longer enforceable at all (existing clauses in place before 1 January are being grandfathered for 5 years).

If your business has Danish employees and you would like to discuss this issue further, please speak to one of our partners or your usual GQ contact.