RESTRAINT ON COMPETITION

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AUSTRIA
RESTRAINT ON COMPETITION
WETTBEWERBSVERBOT

Under the Austrian White-Collar Workers Act (Angestelltengesetz), during their employment relationship white-collar workers may neither operate an independent commercial business nor engage in gainful activitity on their own or a third party's account in their employer's field of business, unless their employer has given consent. If an employee contravenes this ban, the employer can either claim compensation for any damage caused or demand that the gainful activities performed on the employee's own account should be treated as performed on the employer's account. In the case of gainful activities performed by the employee on a third party's account, the employer can demand the surrender of the relevant remuneration or entitlement to remuneration. Since the restraint on competition is by its nature an obligation on the employee to safeguard the employer's business interests, it forms part of the duty of loyalty.

(For details of restraint after the employment has ended, See covenant in restraint of competition.)


Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.