Continued Validity of a Non-Compete Clause After Reemployment

A reemployment commitment agreed between employer and employee grants the employee the option to resume work under the previous conditions.

If the employee makes use of this option and returns to work for the employer, all provisions of the original employment contract continue to apply. This also includes any non-compete clause, along with the obligation to pay a contractual penalty in the event of a breach.

OGH ruling of 16.05.2024, 9 ObA 23/24h