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Yes, the non-competition clause must, in compensation for the restrictions it imposes on your employee, provide for financial compensation. Otherwise, the employee would be entitled not to apply it!

To set the amount of this consideration, you must take into account the customs of your profession and the restrictions you impose on your employee (in terms of duration and geographical scope in particular), your collective agreement may provide for a minimum amount. Be careful, however, to correctly evaluate the compensation because an inadequate amount compared to the restrictions imposed will result in the nullity of the clause.

In addition, the amount paid cannot vary according to the reason for the termination. Thus, it cannot, for example, be reduced in the event of resignation or contractual termination. In these cases, the clause is not null and void, and the employee may claim the highest amount provided for by the clause.

Attention: The non-competition clause cannot be valid unless the protection of the legitimate interests of your company (avoid customer diversion, for example) justifies it, it isn’t limited in time and space and it doesn’t take into account the specificities of your employee’s job (level of qualification, professional experience, missions carried out, etc.).

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