On 29 April 2015, the Minister of Employment introduced a bill on restrictive covenants which entailed a significant change to the present rules.
Among other things, the bill entailed that all rules on restrictive covenants should be gathered in one Act and that there would be significant change regarding the time periods of the covenants and the related rules on compensations. Furthermore, the Act would entail that all employees - and not just Salaried Employees as it is today - could be obliged by restrictive covenants. The bill would have a big impact on the Danish labor market as it would make it harder for employers to obligate their employees by restrictive covenants.
On 27 May 2015, the Danish Prime Minister Helle Thorning called for a parliamentary election to take place on the 18 June 2015.
This means that all proposed bills - including this bill on restrictive covenants - will lapse according to the Danish Constitution.
Whether the bill will be introduced (in the same or a slightly different form) after the election is presently unclear.
Bird & Bird will monitor the development.