The German Federal Court of Justice clarifies the limits of no-poaching agreements under the German commercial law

In a decision dated 30 April 2014, but published only recently, the German Federal Court of Justice (“FCJ”) struck down an agreement between two companies not to “poach” each others’ employees as violating the German Commercial Code (Handelsgesetzbuch, “HGB”). However, the FCJ also clarified under what circumstances companies can lawfully enter into no-poaching agreements, at least under German commercial law. Factual background In August 2005, two companies, which until 2004 belonged to the same group of companies and which were both active in the commercial vehicle business, concluded a joint distribution agreement. The agreement contained a clause pursuant to which the

Access to this article is restricted to subscribers

Already Subscribed? Sign-in

Access to this article is restricted to subscribers.

Read one article for free

Sign-up to read this article for free and discover our services.

 

PDF Version

Author

Quotation

Johannes Zöttl, The German Federal Court of Justice clarifies the limits of no-poaching agreements under the German commercial law, 30 April 2014, e-Competitions April 2014, Art. N° 70362

Visites 321

All issues

  • Latest News issue 
  • All News issues
  • Latest Special issue 
  • All Special issues