In this way, entrepreneurs try to hinder the use of crucial knowledge gained by managers who have left the company. Quite frequently such clauses calling for the protection of business and company secrets turn out to be ineffective. This is due to the fact that indeed the Federal Labour Tribunal generally approves post-contractual secrecy clauses but holds that they are only effective if they do not limit the legitimate interests of the employee in an inappropriate manner. If the post-contractual secrecy obligation is extended to any and all business and company secrets (as is usually the case) the result is a severe uncertainty concerning the effectiveness of such a clause. The situation is different though if the clause is limited to a specifically-named business – or company secret, for instance a recipe or formula etc. In this case such clauses should generally be effective. According to the jurisprudence of the German labour courts clauses are ineffective which forbid the employee after termination to use the client contacts he established during his former job. If the employee is required to refrain from contacting clients after the termination of his employment, this can only be achieved by agreement on a post-contractual non-compete covenant. The parties can, however, only agree on a post-contractual non-compete covenant with a maximum duration of two years offering the payment of a compensatory payment which must add up to at least 50 % of the last contractual remuneration of the employee. Furthermore, clauses according to which secrecy is to be kept after the end of the employment in regard to all business activities during the term of employment are also ineffective. Such clauses restrain the employee from using his gained knowledge which de facto amounts to a non-competition covenant. In any case, it should be carefully checked before signing employment contracts with managers whether it is necessary to include a secrecy clause in the first place. Where this is indispensable, an adequate clause should be drafted with the help of a legal adviser. This is the only way to achieve an adequate protection of valuable business secrets against free use by former employees.