28 May 2025
Web surfing on company time
Replying to a private message or quickly checking the news during work hours: most of us do it occasionally.
Read more
A non-competition clause limits the employee in the opportunity to work elsewhere after his employment contract.
It is important for the employee to be able to continue practising his trade. This is why strict requirements are imposed on the agreement of a non-competition clause. The (former) employer may only under strict conditions protect his market position by means of a non-competition clause. GMW lawyers advises both employers and employees on non-competition clauses.
The non-competition clause must be agreed in writing with an employee of full age. If the clause is included in a temporary contract entered into on or after 1 January 2015, an additional requirement applies. In that case the employer must substantiate in writing why the non-competition clause is important due to substantial business or service interests.
If one of these requirements is not satisfied, the non-competition clause is void and the employer cannot invoke it after the end of the employment.
If the formal requirements have been met and the non-competition clause is valid, the clause is assessed on its substance.
Does the clause relate to a temporary employment contract? Then the Court will assess whether the non-competition clause is necessary due to substantial business or service interests. It is assumed that the employer cannot suffice by stating that there are substantial business interests which necessitate the non-competition clause. The employer must substantiate which specific substantial interests it concerns and why this restricting clause is necessary. This must show that the advantage for the employer from the non-competition clause outweighs the disadvantages of this for the employee. This is a stringent test. The general rule is that a non-competition clause in a temporary contract is not permitted.
The Court can also declare a non-competition clause in an employment contract for an indefinite period of time to be (partly) inapplicable. The content of the non-competition clause must therefore be tailored to the nature of the company. And also the type of work carried out by the employee. The length of the non-competition clause must be tailored to the length of the employment contract. Employees can claim suspension of a non-competition clause in interlocutory proceedings if the clause prevents them from working anywhere at all for example. The Court always balances the interest of the employer in upholding the clause – such as protection of the products, services and clients – with the interest of the employee to be able to work elsewhere.
Finally, the court can order the employer to pay compensation to the employee. In compensation for not being able to work in a similar position elsewhere due to the non-competition clause.
In the event of a drastic change of position, it is possible that the non-competition clause is no longer, or no longer fully, applicable. If there is a change of position it is therefore important to review the content of the non-competition clause.
Instead of the non-competition clause, an employment contract may contain a non-solicitation clause. It means that the employee may work at a competitor of his former employer, but he may not service or approach clients/relations of the former employer. It depends on the type of business whether a non-solicitation clause, a non-competition clause or both give the employer the best protection. The above rules also apply for entering into a non-solicitation clause.
A non-competition clause has in any case always a preventative effect; there are not many employees who are willing to take legal action on this before the end of the employment contract. The employee who, without consulting and without the consent of his (former) employer takes up employment with a competitor, takes a risk. A risk of having to pay a contractual penalty for example.
GMW lawyers can advise on drafting or assessing the text of a non-competition clause or non-solicitation clause. We can also advise as to non-competition clause proceedings. If you have any questions, please contact us directly using the enquiry form below or +31 (0)70 3615048. Our pension and employment lawyers will be happy to support and advise you.
GMW lawyers will be happy to help you with all your employment law issues. Our lawyers assist both employers and employees.
Do you have a question? Please feel free to contact us.
"*" indicates required fields
28 May 2025
Web surfing on company time
Replying to a private message or quickly checking the news during work hours: most of us do it occasionally.
Read more
26 May 2025
Did chronic illness play a role?
It is up to employers to decide whether or not to renew a fixed-term employment agreement. There can be various reasons for not extending an employment agreement: the employee may not fit well within the team, their performance may not meet expectations, or there may simply not be enough work available.
Read more
19 May 2025
The remuneration of temporary workers under the ABU collective labor agreement
According to a significant ruling by the Supreme Court, temporary workers whom are employed through an agency are entitled to the same compensation as employees who are directly employed by the actual employer. This right is based on European law and applies to all essential working conditions.
Read more
30 April 2025
Facing redundancy in the Netherlands?
If you’re employed by a corporation in the Netherlands and are facing redundancy, this article provides practical advice on how to navigate the situation.
Read more
24 April 2025
Restructuring: selection based on suitability is permitted
How does an employer determine which employee is made redundant during a reorganisation? The reflection principle (in Dutch: afspiegelingsbeginsel) is the obvious statutory starting point.
Read more
14 April 2025
Client or Employer?
Since January 1, 2025, the Dutch Tax Authority have resumed enforcement of payroll taxes, focusing on identifying false self-employment on the work floor.
Read more
2 April 2025
Right of consent for works council in a group context
The works council has a legal right of consent when an employer plans to change a remuneration system.
Read more
26 March 2025
Copying company information to a private email
In today’s digital workplace, employees generally have easier access to sensitive company information.
Read more
18 March 2025
Holiday during sick leave: is permission required?
What are the rights and obligations of employees who wish to go on holiday while on sick leave? In this blog, we explain the legal rules, the role of the company doctor, and the possible consequences if a sick employee goes on holiday without permission.
Read more
Notifications