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Compensation in the event of resignation

The most important facts in brief:

  • In the event of dismissal by the employee, so-called self-termination, the employee must continue to have a claim for compensation.
  • When the Employee gives extraordinary noticehe has the option of complying with the post-contractual non-competition clause and receiving the compensation or waiving both.
  • With a ordinary termination by the employer, the employee has the choice ofThe employee can either comply with the non-competition clause and receive the compensation or not be subject to a non-competition clause but not receive any compensation.

Is there an entitlement to compensation for maternity leave if I resign?

In the event of an employee's own dismissal, i.e. an ordinary dismissal, there is an entitlement to compensation for non-competition. The background to this is that compensation for non-competition aims to compensate the employee for the period of non-competition. During this time, the employee cannot actually work. In order to be financially secure during this time, he receives the compensation for non-competition. The fact that the employee resigns does not change this.

Is the entitlement to compensation for maternity leave also valid in the event of termination by the employer?

In the event of termination by the employer, the employee generally has the right to choose whether to terminate the employment contract. Post-contractual non-competition clause and receives the compensation or waives the compensation, but does not have to comply with the post-contractual non-competition clause. The background to this is that it would be contradictory if the employer were to terminate an employee's contract but the employee was then not allowed to go to a competitor.

Whether the employee must comply with the non-competition clause, has a right of choice or even the employer has a right of choice regarding the effectiveness of the non-competition clause depends on which party terminates the employment contract and for what reason:

  • Ordinary termination of the employeeThe employee is entitled to the compensation for waiting time. If an employment relationship has been terminated by the ordinary termination of an employee, it is effective provided the other conditions for effectiveness are met.
  • Extraordinary dismissal of the employeeIf the employee gives extraordinary notice of termination, for example due to a breach of duty by the employer, the employee has the right to choose whether to comply with the non-competition clause and receive compensation or to ignore the non-competition clause, but will not receive any compensation.
  • Ordinary termination by the employerIf the employer terminates the employment contract, the employee has the right to choose between complying with the non-competition clause and receiving compensation or ignoring the non-competition clause and not receiving compensation. Exceptionally, this right to choose does not exist if the employer terminates the contract for reasons that lie in the person of the employee (e.g. termination for conduct-related reasons). In such a case, the employer has the right to choose whether the non-competition clause remains in place and the employee receives compensation or not.
  • Extraordinary termination by the employerIf the employer terminates the contract for cause, the employer can also choose whether the non-competition clause should remain in place.

If a termination is invalid, the post-contractual non-competition clause does not apply. Instead, the general non-competition clause applies, which applies to valid employment contracts.

FAQ

Compensation for non-competition is a monetary payment received by employees who are not allowed to work due to a non-competition clause.

An employee or managing director resigns himself.

Whether a non-competition clause exists in the event of an extraordinary termination depends on the reason for the termination and on how the party in breach of contract behaves.

In the event of ordinary termination by the employer, the employee has the right to choose whether to comply with the non-competition clause and receive the compensation, or to waive the non-competition clause.

The aim of the post-contractual non-competition clause is to ensure that confidential knowledge does not migrate to the competition immediately after termination.

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About the author
Dr. Anne-Kathrin Bertke
Lawyer

Dr. Anne-Kathrin Bertke honed her skills at the most prestigious law firms in her field, where she has led highly complex cases in recent years. These experiences have shaped her approach. At NEWHAVEN, clients can expect excellent and innovative advice.

Professional career

  • Lawyer since 2013, first nine years at Freshfields, then at a leading employment law boutique (Tier One)
  • Secondment to the HR department of Novartis Germany during ongoing restructuring measures
  • Secondment to the "Global Litigation Communications" department (Group-wide crisis communications) of Volkswagen AG
  • Five-month internal investigation at a global insurance company in Switzerland

Academic career

  • Studied at the Bucerius Law School in Hamburg (LL.B. and Dr. jur.) and the University of Texas at Austin, USA, as a scholarship holder of the German National Academic Foundation
  • Doctorate with Professor Dr. Matthias Jacobs (Bucerius Law School) on the topic "On the admissibility of sympathy strikes"
  • Legal clerkship at the Hanseatic Higher Regional Court

Publications and Presentations

Dr. Anne-Kathrin Bertke is a speaker at the IfUS Institute (Institute for Corporate Restructuring and Development) in Heidelberg, where she leads the module "Employment Law Restructuring Measures in Crisis" as part of the "Restructuring and Reorganization Consultant Certificate Course". She is a regular speaker at specialist conferences, most recently at the Center for Labor Relations and Labor Law (ZAAR) in Munich, at the conference of the Labor Law Working Group of the German Bar Association (DAV) and at the local conference of the German Association of Labor Courts, at the Practitioners' Group on Works Constitution Law and at the Federal Association of Labor Lawyers in Companies (BVAU) and provides impetus in publications on key topics in labor law.

Recent lectures and publications deal with the following topics, among others:

  • Employment law in restructuring and insolvency
  • Digitalization in the workplace - data protection and employee co-determination
  • Compliance risk works council remuneration
  • Working time recording
  • Post-contractual non-compete clauses
  • Supply chain compliance and trade secret protection
  • Cross-border conversions and news on the European Company (SE)
  • Whistleblowing and managing directors
  • Directors' liability in the pandemic
  • Occupational health and safety

Voluntary commitment / Memberships

  • As President of the Bucerius Law School Alumni Association (Bucerius Alumni e.V.), Dr. Anne-Kathrin Bertke leads a community of over 2,300 members and is committed to the exchange between academia and practice.
  • Further memberships (selection)
    • Alumni of the Studienstiftung e.V.
    • Labor Law Working Group of the German Bar Association (DAV)
    • German Labor Court Association
    • Hamburg Association for Labor Law e.V.
    • Hamburg Bar Association

Further contributions

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