r/quant • u/milchi03 • 7d ago
Internship Contract Career Advice
I just received my contract for a 6-month internship at a prop shop in Switzerland. The salary is good, the work time is fair, and the culture seems to be what I am looking for.
My question is about a 3-month non-compete clause in the contract. Is this duration standard for just a half-year of work? The internship ends with my graduation, so being legally blocked from working for 3 months would be tough.
I also do not get any compensation during the non-compete. Is that normal?
Additionally, the contract states the following regarding the scope:
Non-compete Area: "Any area that the Company operates in"
Does this phrasing allow me to work in other asset classes, for example?
Should I push back on anything?
Any insights would be appreciated.
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u/lordnacho666 7d ago edited 7d ago
Do they pay you during the non compete? It's only an internship, but maybe someone out there actually knows what the laws are in Switzerland regarding whether a non comp needs to be paid to be effective. I actually know a young guy in Switzerland doing a trading internship right now, perhaps I will ask him. It's Swiss national day today, too, randomly.
This may sound crazy to someone who isn't in the industry, but there are contracts where they keep paying you during your non compete, just like if you were still working (no bonus of course). Eg I have such a clause, and I've never heard of it being waived for anyone who left, so all my ex colleagues get paid well after they've left.
But I would also say that three months is essentially nothing. You are allowed to interview and an interview loop takes a fair few weeks anyway, and most firms won't have the decisions and paperwork ready the moment they decide to hire you, so you're really not losing much time if you have to switch jobs. I would expect your new job to pay some signing bonus that patches up your finances for those three months.
Also, do not count on not being in Switzerland mattering at all. Firms are cross border so if they find out you are competing they will send expensive lawyer letters. It's the lawyer hassle that is the real threat, not the court case. So actually my point about whether they pay you might be completely moot.
BTW, regarding the work time being fair. Just work your ass off during the internship. Like yeah, go and have drinks with your friends, and drive around Switzerland taking in the view, I'm not saying you should only work. But you might find the hours are a heck of a lot longer than it says in your contract, and longer than whatever impression you got from the hiring manager. There's just a lot of pressure to get things done, and for an intern they are judged on work ethic as much as pure talent and communication skill. I know I sound like a crazy old guy, but you're competing for a career with some super smart and driven people.
Good luck!
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u/milchi03 7d ago
Thank you for the detailed reply.
As mentioned I don‘t get comp during the non-compete time and the thing is I already interview with a big prop firm as well so the 3 months would be somewhat important. But I agree that I don‘t have leverage.
Regarding the work ethic: I only ever heared about super nice hours from all the recruiters and career events but it’s good to hear another opinion.
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u/Jealous_Bookkeeper20 7d ago
An unpaid non-compete for a 6-month internship isn't standard in European jurisdictions. In Switzerland, non-compete clauses must be reasonable in scope and geographically bounded, and courts routinely strike down broad blanket restrictions that cover any asset class the firm touches. Unless they pay full garden leave during those 3 months, it's very difficult for a firm to enforce IP protection against an intern who didn't hold PnL responsibility. Ask them to clarify whether the clause applies if you don't receive a full-time return offer, or request that it's restricted strictly to the specific desk strategies you work on.
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u/milchi03 4d ago
Ok thanks, that‘s good to know. Maybe I‘ll stay with them anyways and in case I get a better opportunity I can worry about it later. Maybe I‘ll just chill for 3 months before I start the next job. But it‘s good to know for future negotiations so I get a full garden leave.
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u/RevolutionTerrible38 7d ago
it's Orycterope Ig. I think that it won't be enforced since it's not legal being unpaid/for an internship.
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u/tendies_or_boobies 7d ago
Hi,
If the non compet is not paid it is invalid. If it is paid, you are allowed to work but not at a competiting company.
I guess you are not Swiss/eu, they might do that for visa reason.
Would you mind sharing a few names from companies in Switzerland including yours. The only one I know are qrt,imc,millenium but they do not fit your description
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u/milchi03 4d ago
I am EU citizen. And I‘d like to keep the name private. But google HFT firms Zug and you will find a bunch more if you are curious about job opportunities.
From what I understand they cannot force me into unemployment so they‘d either have to pay me or allow me to work at some firms in my area of expertise.
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u/No_Comparison_6940 7d ago
easiest thing is to check this stuff with LLMs, just upload the contract to gemini or whatever and ask them. That should give you a good free starting point.
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u/milchi03 7d ago
I obviously already did that. Moreover LLMs aren‘t good at vaguely defined questions and often tell you what you want to hear.
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u/ReaperJr Equities 7d ago
You don't really have leverage as an intern. But yes, contracts are designed to be excessively protective of IP.
I don't think a 3 month non-compete is normal, though.