This blog refers to Bettina Goletz’s blog on “Limits on non-compete and non-solicitation clauses under German law”. We have recently been asked whether the employee is entitled to compensation payments under a post-contractual non-compete clause in the situation where the employing company files for insolvency.
A temporary Scheme was introduced in March 2009
The purpose of the temporary Scheme is to ensure that former employees of insolvent businesses receive a reasonable amount of compensation promptly, where they are owed money by their former employers.
In a White Paper published on 03 December 2009 the States proposed to introduce a permanent Scheme. The deadline for respondents to submit their views was Friday 05 February 2010