Understand Your Employment Clause

Understand your employment clause

A clause can limit your options when switching jobs. That’s why it’s crucial to understand what you’ve agreed to—and how it can impact your future.

What is a non-compete clause?

A non-compete clause prevents you from taking a job with a competing company—or starting your own business in the same field—after leaving your current position.

The purpose of this clause is to protect your former employer from direct competition by you as a former employee.

Important: Clauses signed after 1 January 2016 are subject to new regulations. If your clause is older, we recommend contacting our legal advisors.

Talk to a legal advisor from Pharmadanmark

What is a customer clause?

A customer clause limits your ability to initiate business contact with your former employer’s customers or partners—such as suppliers—after your employment ends.

This type of clause is designed to safeguard the company’s business relationships.

What is a combined clause?

A combined clause includes both a non-compete and a customer clause. If you're bound by both, the following applies:

• The clause may last no more than 6 months
• You are entitled to financial compensation during this period

Your right to compensation

If you're subject to any type of clause, you have the right to monetary compensation.

When you leave your job

• Clause up to 6 months: Minimum 40% of your salary
• Clause over 6 months: Minimum 60%
• Combined clause: Minimum 60%
• You always have the right to 2 months' compensation as a lump sum at the time of departure

If you start a new job during the clause period

• Clause up to 6 months: Minimum 16% of your salary
• Clause over 6 months: Minimum 24%
• Combined clause: Minimum 24%

The compensation is paid out monthly for as long as the clause is in effect.

Loyalty obligations while employed

As an employee, you're required to remain loyal to your employer—even if you've been released from work duties (fritstillet).

That means you must not:

• Work for a competitor
• Start a competing business

This applies as long as you’re still receiving a salary, whether or not this is written into your contract.

Note: This is not a formal clause but a general employee obligation.

What should you do if you're bound by a clause?

If you have any questions about your clause—big or small—reach out to our legal team.