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New Statutes on Restrictive Covenants Become Effective January 1, 2017, for Contracts Existing Before January 1, 2016
Author: Ole Kristian Olsby, Partner — Homble Olsby advokatfirma AS
New statutes on restrictive covenants, Chapter 14A in the Working Environment Act, came into effect January 1, 2016, with a one year delay on restrictions entered into before 1 January 2016. As of January 1, 2017 the law also applies to existing contracts. In addition to material conditions, the employers must comply with procedural conditions to invoke non-competition clauses and non-solicitation of customers clauses. The employers must send a written statement to the employee within four weeks after a resignation or after the notification of the termination. The statement must inform the employee of a decision to invoke the restriction (or not), and describe the special need the employer has to invoke the non-compete restrictions.