Professor Bengt Domeij Juridiska fakulteten Uppsala universitet Collective agreements for non competes in Sweden From 1969 non competes only for employees with advanced ID: 532365
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Slide1
Complements or alternatives to exclusive rights. Non-competition clauses in employment contracts – a common understanding?
Professor Bengt Domeij
Juridiska fakulteten, Uppsala universitetSlide2
Collective agreements for non-competes in Sweden
From 1969 – non-
competes
only
for
employees
with
advanced
technical
trade
secrets
. Terminated by the Swedish
employer
federation in 2014.
New
collective
agreement
in 2015. All
employees
with
trade
secrets
.
Significant
liberalization
,
but
what
does
it
mean
?Slide3
2015 Swedish collective agreement – issues
Swedish Labour
court
has
held
that
technical
secrets
or long-
standing
customer
relations
may
warrant
non-
competes
.
But
are an
individual’s
customer
relations
trade
secrets
?
Interpreted as max 9
months
for business know-how and max 18
months
for
technical
know-how.Slide4
Compensation1969
agreement
– 60 % of final
pay
guaranteed
.
2015
agreement
– 60 % of final
pay
if
employee
otherwise
would
have
competed
and
was
prevented
from
employment
due
to
the
covenant
not
to
compete
.Slide5
Swedish Labour Court case AD 2013 nr 24 – no blue-pencilingIf the
interest
of the
employer
is in the
customer
relationships, a general non-
compete
is not
allowed
but
only
a
restriction
to
continue
with
the
customers
of the
employer
.
Employer
limiting
a non-compete after termination in order to create validity is not possible (against the will of the
employee
).Slide6
Some open issues
Is
promised
compensation
required
for
narrow
or short non-
competes
,
such
as non-
recruits
?
Is it
justified
to
prevent
a former
employee
to
work
with
all the
employer’s
customers
or
only
customers
with
whom
the
employee
has
had
a personal relationship?Slide7
Open issues
Can
investments
in
education
justify
non-
competes
?
Is it
justified
to
condition
compensation
to
the
employee
by the
effects
the
clause
has
had
?
Non-
recruits
after starting at a non-
competitor
company
?
I
am
critical
of the 2015
collective
agreement
(
liberalization
) and
believe
that
Sweden
too
should
legislate
.