Validity of a non-compete clause in an employment contract

Facts

X. SA, a corporation based in Geneva, hired [Y.] and [Z.] as "senior training coaches". The employment contracts contained a non-compete clause for a duration of two years after the end of the contract, with a contractual penalty. After the departure of [Y.] and [Z.], X. SA sued them for breach of this clause and diversion of clientele. The cantonal courts rejected X. SA's claims, considering that the non-compete clauses were not valid. X. SA then appealed to the Federal Supreme Court.

Considerations

The Federal Supreme Court dismissed X. SA's appeals. It held that when the employee provides the client with a service that is characterized mainly by their personal skills, so that the client attaches more importance to these skills than to the identity of the employer, a non-compete clause based on knowledge of the clientele is not valid. In the present case, the cantonal court found that the personal qualities of the trainers accounted for 70% of the clients' decision, which excluded the validity of the non-compete clause. Furthermore, the Federal Supreme Court ruled that the employee's duty of loyalty expires at the…