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Federal Act
on the Amendment of the Swiss Civil Code
(Part Five: The Code of Obligations)

of 30 March 1911 (Status as of 9 February 2023)

Art. 340

VII. Pro­hib­i­tion of com­pet­i­tion

1. Re­quire­ments

 

1 An em­ploy­ee with ca­pa­city to act may give the em­ploy­er a writ­ten un­der­tak­ing to re­frain from en­ga­ging in any activ­ity that com­petes with the em­ploy­er once the em­ploy­ment re­la­tion­ship has ended and in par­tic­u­lar to re­frain from run­ning a rival busi­ness for his own ac­count or from work­ing for or par­ti­cip­at­ing in such a busi­ness.

2 The pro­hib­i­tion of com­pet­i­tion is bind­ing only where the em­ploy­ment re­la­tion­ship al­lows the em­ploy­ee to have know­ledge of the em­ploy­er’s cli­en­tele or man­u­fac­tur­ing and trade secrets and where the use of such know­ledge might cause the em­ploy­er sub­stan­tial harm.