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

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Auteur

  • Jones Day (Dusseldorf)

Citation

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

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