Lund Elmer Sandager contributes to IEL’s Guide to Restrictive Covenants

International Employment Lawyer (IEL) has launched its new international Guide to Restrictive Covenants. Covering 25 jurisdictions, the guide provides companies, HR professionals and legal advisers with a practical tool for navigating the different national rules governing restrictive covenants.

Lund Elmer Sandager is the exclusive contributor for Denmark. The Danish chapter was authored by partner Michael Møller Nielsen, attorney Lene Lindved Fruensgaard and assistant attorney Liw Christensen from our Employment Law team.

Focus on Danish restrictive covenants

The Danish contribution provides a comprehensive overview of the Danish Act on Restrictive Employment Clauses and addresses:

• The different types of restrictive covenants, including non-compete, non-solicitation and combined clauses.
• The conditions that must be met for a covenant to be valid and enforceable against an employee.
• Requirements relating to the employee’s position, length of service, written information and compensation.
• The maximum duration of restrictive covenants and the compensation payable during the restricted period.
• Restrictions on the use of no-hire clauses and provisions intended to prevent the recruitment of former colleagues.
• The protection of confidential information and trade secrets during and after employment.
• Garden leave and the employee’s duty of loyalty during the notice period.
• The employer’s enforcement options, including interim injunctions, damages and contractual penalties.
• The significance of governing-law clauses in international employment relationships where the employee works in Denmark.

The guide also considers the differences between restrictive covenants in employment relationships and restrictions contained in commercial agreements, shareholders’ agreements, franchise agreements and incentive arrangements.

The Danish chapter offers practical insight into when restrictive covenants may be used, the formal requirements employers must satisfy and the options available to the parties if a dispute arises regarding a covenant’s validity or scope.

Read the Danish contribution to the Guide to Restrictive Covenants.