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due to the restrictive covenant, the limit is 125%. 65 . If one party has provided groundsfor terminating the employment relationship for cause the other party may declare,within one month, that it is no longer bound by the restrictive covenant. 66 . The sameapplies in favor of the employee if the employer terminates the employment agreementwithout justification. The employer may waive the restrictive covenant at any timebefore the employment agreement expires. However, in this case it must pay thecompensation for one more year. Consequently, if it waives the restrictive covenant oneyear or more before the employment agreement comes to an end, no compensation willneed to be paid since it will be set-off against the paid contractual remunerationanyway.D. Belgium 671. Non-Competition Agreements:• It is only possible to agree upon a non-compete foremployees, who earn more than EUR 40K gross per annum;• The non-competes should be limited to the region where theworker was active during his employment;• The maximum duration of a non-compete is 12 months;• A non-compete can only be enforced in case the employeeresigns or the employer terminates the employmentagreement for serious cause;65 Sec. 74c German Commercial Code.66 Sec. 75 German Commercial Code.67 By Bruno Blanpain (Bruno.blanpain@mvvp.be) of the ALFA Belgium firm Marx Van Ranst Vermeersch& Partners.3082723.3