Employment terms
An employment term can limit your opportunities when changing jobs. It is important that you understand what you have agreed to – and how this may affect your future career.
Many employees in the Life Science industry are subject to one or more employment term.
It is important that you understand what these mean – and exactly what you are agreeing to.
Please note that contracts signed before 1st of January 2016 are subject to specific rules.
If you are unsure about your contract, we recommend that you contact our legal team at jura@pharmadanmark.dk.
The official terminology is restrictive covenants, but in everyday language people most often refer to it collectively as employment terms.
Types of employment terms
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 industry – after leaving your position.
The purpose is to protect your former employer from direct competition.
A non-compete clause can apply for a maximum of 12 months from the date you leave your job.
What is a non-solicitation clause?
A non-solicitation clause prevents you from contacting your former employer’s customers and business partners – such as suppliers – after leaving your job.
The purpose is to protect the company’s business and relationships.
A non-solicitation clause can apply for a maximum of 12 months from the date you leave your job.
What is a combined clause?
If you are subject to both a non-compete clause and a non-solicitation clause, this is called a combined clause.
A combined clause can apply for a maximum of 6 months from the date you leave your job.
You are entitled to compensation
If you are bound by a clause, you are entitled to financial compensation.
This applies to non-compete, non-solicitation, and combined clauses.
Compensation is paid monthly while the clause is active.
Compensation when leaving your job
Clause up to 6 months: At least 40% of your salary
Clause over 6 months: At least 60% of your salary
Combined clause: At least 60% of your salary
You are always entitled to a minimum of two months’ salary as a one-off payment upon termination.
Compensation if you start a new job during the clause period
Clause up to 6 months: At least 16% of your salary
Clause over 6 months: At least 24% of your salary
Combined clause: At least 24% of your salary
Your duty of loyalty during employment
As an employee, you have a duty of loyalty towards your employer. This also applies if you are released from your duties.
This means that you must not:
Work for a competitor
Start a competing business
This applies as long as you receive your salary – regardless of whether it is stated in your contract.
This duty of loyalty is not a clause, but a general obligation as an employee.
Do you need legal assistance?
You can always contact our legal team if you have questions or need help.
Phone: +45 39 46 36 05
Mail: jura@pharmadanmark.dk
