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Professor Bengt Domeij Juridiska fakulteten, Uppsala universitet

Delve into the evolution of non-compete agreements in Sweden, analyzing collective agreements, compensation structures, and unresolved issues.

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Professor Bengt Domeij Juridiska fakulteten, Uppsala universitet

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  1. Complements or alternatives to exclusive rights. Non-competition clauses in employment contracts – a common understanding? Professor Bengt Domeij Juridiska fakulteten, Uppsala universitet

  2. Collectiveagreements for non-competes in Sweden • From 1969 – non-competesonly for employeeswithadvancedtechnicaltradesecrets. Terminated by the Swedish employer federation in 2014. • New collectiveagreement in 2015. All employeeswithtradesecrets. Significantliberalization, butwhatdoes it mean?

  3. 2015 Swedish collectiveagreement – issues • Swedish Labour court has heldthattechnicalsecrets or long-standingcustomer relations maywarrant non-competes. But are an individual’scustomer relations tradesecrets? • Interpreted as max 9 months for business know-how and max 18 months for technical know-how.

  4. Compensation • 1969 agreement – 60 % of final payguaranteed. • 2015 agreement – 60 % of final payifemployeeotherwisewouldhavecompeted and wasprevented from employmentdueto the covenant not tocompete.

  5. Swedish Labour Court case AD 2013 nr 24 – no blue-penciling • If the interest of the employer is in the customer relationships, a general non-compete is not allowedbutonly a restrictiontocontinuewith the customers of the employer. • Employerlimiting a non-compete after termination in order to create validity is not possible (against the will of the employee).

  6. Someopenissues • Is promisedcompensationrequired for narrow or short non-competes, such as non-recruits? • Is it justifiedtoprevent a former employeetoworkwith all the employer’scustomers or onlycustomerswithwhom the employee has had a personal relationship?

  7. Openissues • Caninvestments in educationjustify non-competes? • Is it justifiedtoconditioncompensationto the employee by the effects the clause has had? • Non-recruits after starting at a non-competitorcompany? • I amcritical of the 2015 collectiveagreement (liberalization) and believethat Sweden tooshouldlegislate.

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