In the present case, dated March 28 2012, the former managing director of a company was sued in summary proceedingsby his former employer for breach of his non-compete clause. In its decision, the court ordered the employee to cease any activity with his new employer.

The employee challenged this decision, arguing that the judge had no power to order the termination of his employment contract with his new employer or any measure that would lead to it.

The Cour de cassation ruled that the summary proceedings judge, who did not expressly order the termination of the new employment contract, was fully empowered to prohibit the continuation of the activity performed in breach of the non competition clause in the prior contract, regardless of whether this would have the result of leading to the termination of the new employment contract.

This ruling will have a significant impact and might dissuade employees bound by a non-compete clause from breaching such specific obligation. In addition to losing the benefit of the financial compensation which is required under French law to be paid in conjunction with a non-compete obligation, and to being compelled to pay damages to their former employer, they could also be ordered to cease their new activities.

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