| Advocatenkantoor Bolton 2022 | Rennemigstraat 17 A | | 6413BR | Heerlen
Restrictive clauses of the employment contract
| non-compete clause
A non-competition clause / non-compete clause, non-concurrentiebeding or just
concurrentiebeding, are terms used in Dutch employment contracts under which a -
former - employee agrees not to pursue a similar profession or trade in direct
competition against the employer. Due to the complexity of non-competition clause
under Dutch law - and its extensive jurisprudence - it is not possible to address this
matter more in detail here. But there are some interesting issues to keep in mind.
Non-competition clause | non-compete clause | concurrentiebeding
The use of such a restrictive clause in the employment contract takes into account that
upon their termination or resignation, an employee might start working for a competitor
or set up his own business. Using the knowledge gained from his former employer
would give him a competitive advantage. Most Dutch judges will deem such a non-
competition clause to be legally binding as long as the clause contains reasonable
limitations as to the geographical area and time period in which a former employee may
not compete. The Dutch courts have held that an individual cannot be barred from
carrying out a trade in which he has been trained except to the extent that is necessary
to protect the reasonable interests of the former employer.
A judge can however annul the non-competition clause when the former employee is
disproportionately affected by the clause. A non-competition clause may have become
ineffective over time. This can occur if the employee’s job within the company has
significantly changed. An employer can also not claim any rights from the non-
competition clause if he was at fault in the termination of the employment contract ie
the termination was irregular. As the issue of a non-compete clause under Dutch law is
fairly complex, it is always wise to seek legal advice before taking any action.
Non-solicitation agreement | relatiebeding
A non-solicitation agreement, relatiebeding, is closely related to the non-competition
clause. It is a clause by which an employee agrees not to solicit - or even accept -
business from the employer's customers or business relations. It prevents a former
employee or his new employer from gaining a competitive advantage by using business
sensitive information such as customer / client lists.
Non-disclosure agreement (NDA) | confidentiality agreement geheimhoudingsclausule
A non-disclosure / confidentiality agreement ( geheimhoudingsclausule), is used in
Dutch employment contracts to prevent an employee from abusing confidential
information about a former employer's operations or trade secrets, patents, upcoming
products and marketing plans. By using this knowledge a competitor could gain an unfair
advantage by headhunting / poaching employees with valuable business information.
Notice - Disclaimer
The information offered on this page is intended for information purposes only. It does
not imply a specific advice about your situation nor does it constitute a binding legal
relationship with Advocatenkantoor Bolton. As Dutch law is dynamic in nature, we
cannot guarantee the actual correctness of the information on this website. For specific
advice you can contact us for an appointment by phone +31 45 888 74 64 or by e-mail
secretariaat @ advocatenkantoorbolton.nl
-
-