Non-Compete Clauses & Confidentiality
Legal Advice for Employers
Non-Compete Clauses and Confidentiality in Gothenburg and Kungsbacka
The ability to prevent an employee from competing with their employer after the termination of employment is limited. However, with carefully drafted contractual provisions, an employer can achieve a certain level of protection.
At Advokatfirman Glimstedt offices in Gothenburg and Kungsbacka, we have extensive experience assisting our clients with matters of labour law, as well as issues related to competition and confidentiality.
We help our clients feel secure in matters of labour law
Minimise the Risk of Employee Competition
The ability to prevent an employee from competing with the company’s business after their employment ends is limited. However, during active employment, the employee is fully bound by a duty of loyalty to their employer. This means, among other things, that the employee must actively work with the employer’s best interests in mind.
For a non-compete clause to be enforceable, it must be deemed reasonable based on a comprehensive assessment in accordance with Section 38 of the Swedish Contracts Act. Legally, it is challenging to restrict former employees from continuing to work within their profession after their employment. However, if the former employee exploits or discloses clear trade secrets, the situation may be different.
If the employee holds ownership interests in the employer, the possibilities of establishing various competition restrictions through agreements are significantly improved.
Protecting Trade Secrets and Client Data through Confidentiality Requirements
For a business to thrive, it is often crucial to safeguard critical information and the enterprise itself from unfair competition.
The Swedish Act on the Protection of Trade Secrets applies to information that is not publicly known or easily accessible. It also requires that the company has taken active steps to keep the information confidential and that its disclosure would harm the business. However, the knowledge and skills gained by an employee through normal professional practice are not considered trade secrets.
It is essential for contracts—typically employment contracts—to clearly define what is deemed a trade secret. This includes specifying which information falls under protection and outlining the consequences of any unauthorised disclosure. As a guiding principle, sensitive information should not be needlessly shared with individuals who do not require it for their work duties.
Do You Need Help with Non-Compete Clauses and Confidentiality Agreements?
With extensive expertise in labour law, Advokatfirman Glimstedt is here to make your professional life a little easier.
We aim to help our clients conduct better business by offering both legal and commercial assessments on matters such as competition, confidentiality, and the optimal drafting of agreements to ensure their intended effect.
Our expert lawyers in labour law – Gothenburg and Kungsbacka
Advokatfirman Glimstedt has eleven offices in Sweden and three in the Baltic States. Visit www.glimstedt.se to learn more about our entire business.