Jump to main content

Confidentiality: Indefinite cath-all clause is invalid

Confidentiality: Indefinite cath-all clause is invalid

The Federal Labor Court has decided that a standard contractual clause that obliges the employee to maintain confidentiality regarding all internal processes at the employer for an indefinite period of time beyond the end of the employment relationship is invalid. It places the employee at an unreasonable disadvantage, as it would effectively prohibit them from using their knowledge in an appropriate position with a new employer (BAG, October 17, 2024, 8 AZR 172/23).