Competition and business secrets

Competition duties during employment and post-contractual restrictions follow different rules. Protecting secrets also requires practical confidentiality measures.

Evidence and a proportionate response

Create a reliable chronology identifying the conduct, dates, participants and supporting material. Separate facts from assumptions and legal conclusions. Suspicion must not be treated as established misconduct. At the same time, protective duties may justify proportionate interim measures while the facts are investigated.

The investigation should fit its purpose. Consider access rights, data protection, employee participation and an appropriate opportunity to respond. Identify conflicts of interest and who can make decisions. Employment action depends on the relevant duty, fault, seriousness, recurrence and the specific legal conditions. Different remedies may require different evidence.

Documents and practical implementation

Bring incident notes, relevant correspondence, policies and records of measures already taken. Covert recording and indiscriminate data collection may create further legal problems. Once the facts are assessed, set responsibilities, deadlines and communication arrangements. In ongoing conflicts, review whether protective measures work and how new incidents will be addressed.

Four practical examples

These illustrative situations highlight the issues to examine. The outcome depends on the agreement and the facts that can be established.

Example 1

A departing employee joins a competitor. Check whether a valid post-contractual restriction applies.

Example 2

A covenant lacks compensation. Review enforceability and consequences before relying on it.

Example 3

Customer files are copied before departure. Secure lawful evidence and assess protective action.

Example 4

A confidentiality clause covers everything indefinitely. Review its scope and whether information is actually protected.

Discuss your situation

We advise on the applicable German employment rules and coordinate the issues relevant to your proposed action. Send an enquiry.

Deutsch · Reviewed on 13 November 2026.

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