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Walks the conditions set by section 38 of the Contracts Act and the Trade Secrets Act: protectable secret information, compensation during the binding period and a duration proportionate to the protection.
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Avtalslagen 38 § SFS 1915:218 · Lagen om företagshemligheter SFS 2018:558 · Read 2026-08-20
The Swedish Parliament: The Trade Secrets Act protects information the holder has taken reasonable steps to keep secret and whose disclosure is liable to cause harm. source
Avtalslagen 38 § SFS 1915:218 · Lagen om företagshemligheter SFS 2018:558 · Read 2026-08-20
Swedish Labour Court: The Labour Court weighs compensation during the binding period against the burden on the employee when reasonableness under section 38 of the Contracts Act is tested. source
Avtalslagen 38 § SFS 1915:218 · Lagen om företagshemligheter SFS 2018:558 · Read 2026-08-20
The Swedish Parliament: Section 38 of the Contracts Act sets no fixed limit. The binding period is tested against what the protection requires in the individual contract. source
Avtalslagen 38 § SFS 1915:218 · Lagen om företagshemligheter SFS 2018:558 · Read 2026-08-20
European Commission: The Trade Secrets Directive presupposes that protection targets those who actually received the secret in the course of their work. source
The answer is computed once every step is answered.
Swedish Labour Court · 2017-06-21
A non-compete clause was invoked against a former employee who had joined a competitor.
The court tested the clause's reasonableness against duration, compensation and the employee's position.
A clause without compensation during the binding period carries a heavier burden in the reasonableness test.
https://www.arbetsdomstolen.se/sv/avgoranden/Supreme Court of the United States · 2018-05-21
Employment agreements required individual arbitration instead of class proceedings.
The court held that such agreements are to be enforced under the Federal Arbitration Act.
Contract terms are tested differently in Sweden and the United States, and the dispute clause decides where the question lands.
https://www.supremecourt.gov/opinions/17pdf/16-285_q8l1.pdfThe rows reproduce what the source says. They are not legal advice, and applying them to a specific case is the reader's or their counsel's decision.
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