non-compete obligation

In France the rules governing restraint of trade provisions in the context of an employment relationship have been established through case law. Generally speaking, restrictive covenants in an employment contract will only be considered enforceable by French courts if:

  • it can be shown that the inclusion of the restriction protects a legitimate business interest; and

The legal context

It is quite common for employers to include in an employment contract the possibility of unilateral waiver of the application of a non-compete obligation at the end of the employment relationship. French case law does permit such flexibility but only provided that (i) such waiver is expressly stipulated in the employment contract