Contract clauses are modern versions of conscription

The growing use by Danish employers of clauses in employment contracts, which prevent employees from using company-acquired knowledge or contacts in new jobs, is alarming the AC confederation of professional trade unions.

Over the past 10-15 years, employees with a university degree have found that a growing number of employers have been using various clauses in their employment contracts which prevent employee from using company-acquired knowledge and contacts when they either apply for or commence a new job. Employers are worried that competitors will take advantage of the knowledge acquired by those who move on to new jobs with competing firms. A 1992 survey by the Danish Confederation of Professional Associations, (Akademikernes Centralorganisation, AC), showed that such restrictive clauses were especially widespread in the private sector, and were also being increasingly adopted in the public sector. A recent enquiry among the affiliates of AC, shows that these clause have become considerably more widespread since 1992. About 50% of engineers and one in three members in economics, finance and law now have such clauses in their contracts of employment.

These developments have alarmed AC, which argues that restrictive clauses are modern versions of "conscription", because:

• applicants for new jobs are placed in a difficult situation because if they are unsuccessful in their job application their prospects of promotion with their existing employer are likely to be adversely affected;

• the clauses are often vague and ambiguous, and employees are seldom aware if their clause have been breached. Moreover, the mere existence of such clauses can put them off from applying for new posts;

• if employees seek clarification of these clauses with their employer, it could result in their employer believing that they were considering moving to another company; and

• the sanctions imposed for breaching these clauses can be considerable.

Since employees with a university degree or other equivalent qualification are dependent on using their updated knowledge and professional skills, such clauses have an adverse impact on their marketable value in the labour market.

AC now intends to undertake an in-depth analysis of the development of these clauses in employment contracts and will work out ways whereby they could be reworded to satisfy the needs of both employers and professional employees. The confederation has also brought this problem to the attention of the Minister of Labour, Jytte Andersen, who is now to review whether there is a need for legislation in this area.