The Confederation of Swedish Enterprise and the Negotiation Cartel for Salaried Employees in the Private Business Sector have, on 2 July 2015, entered into a new agreement regarding non-compete clauses in employment agreements. The new agreement replaces the previous 1969 collective bargaining agreement on non-compete clauses that was terminated on 31 May 2015. Under Swedish law, non-compete clauses are governed by Section 38 of the Contracts Act that stipulates that too far reaching non-compete commitments may be deemed unreasonable and thus unenforceable. The new agreement includes provisions on reasonableness, duration, scope and compensation. The new agreement will apply to agreements entered into on or after 1 December 2015.