confidentiality and restrictive covenants in the eu - a quick guide

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    FEATURE

    Any employer will want to ensure that both current and former employees

    do not misuse information crucial to its business interests. In this

    QuickGuide, experts from BAKER & McKENZIE consider the degree to

    which legislation and settled legal principles in France, Germany, Italy, The

    Netherlands and the UK (England and Wales) can assist

    Confidentiality andrestrictive covenants in

    the EU: QuickGuide

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    GLOBAL COUNSEL MARCH 2003 www.practicallaw.com/global

    EMPLOYMENT: RESTRICTIVE COVENANTS

    57GLOBAL COUNSEL MARCH 2003 www.practicallaw.com/global

    EMPLOYMENT: RESTRICTIVE COVENANTS

    56

    Restrictions should be limited tocertain types of suppliers, prefer-ably, exclusive suppliers of goods

    and services, or suppliers who haveprovided goods and services or haveagreed to provide goods and ser-

    vices to the employer during a par-ticular period before or after thedate on which the employee's em-ployment is terminated.

    In addition, a link must be estab-lished between the ex-employee andthe relevant contact, that is, hemust be someone with whom the

    employee had personal contact ordealings before leaving the com-pany.

    See Non-competition.

    See Non-competition.

    In this type of clause, the relation-ship between the supplier and theemployee will be the most relevantconsideration.

    Ellen Temperton, Allison Brown and

    Marina Murray, Baker & McKenzie,London

    Do such restrictions need to be lim-ited to certain types of suppliers?

    Do any other limitations have to beimposed?

    What remedies are available forbreach of such restrictions?

    Are there any other relevant consid-erations?

    Contributors

    N/A

    N/A

    N/A

    N/A

    Denise Broussal and Sophie Cahen,

    Baker & McKenzie, Paris

    Yes, they should be limited to sup-pliers to group companies the em-ployee worked in and of which he

    would have had knowledge.

    No.

    See Non-competition.

    Such a restriction will not be valid:

    In respect of employees whohave no dealings with suppliers.

    If it completely prevents theemployee from working in his pro-

    fession.

    In this case, it will be difficult toidentify a legitimate interest of theemployer which may justify prevent-ing the employee from using certain

    suppliers.

    As the courts have not yet dealt withsuch clauses, it is not clear whetherthey would share the above views.

    Christian Reichel, Baker & McKen-

    zie, Frankfurt

    See Non-solicitation of customersand Non-solicitation of employees.

    No.

    See Non-solicitation of customersand Non-solicitation of employees.

    See Non-solicitation of customersand Non-solicitation of employees.

    Karianne Kas, Baker & McKenzie,

    Amsterdam

    See previous answer.

    See previous answer.

    See previous answer.

    See previous answer.

    Uberto Percivalle and Valentina Po-

    mares, Baker & McKenzie, Milan

    France Germany Italy The Netherlands UK (England and Wales)

    www.practicallaw.com/global

    PLCGlobal Counsel WebPRACTICAL LAW COMPANY