Non Compete Agreement for Belgium

Non Compete Agreement Template for Belgium

A Non-Compete Agreement under Belgian law is a legally binding document that restricts an employee from engaging in competitive activities after the termination of their employment. This agreement must comply with strict Belgian legal requirements, including limitations on duration (maximum 12 months), geographical scope (must be specifically defined), and mandatory financial compensation (minimum 50% of gross salary during the restriction period). The document outlines specific prohibited activities, territories, and time periods while ensuring compliance with both Belgian employment law and EU regulations. It includes provisions for enforcement, remedies for breach, and must balance the employer's legitimate business interests with the employee's constitutional right to work.

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What is a Non Compete Agreement?

Non-Compete Agreements are essential tools for businesses operating in Belgium to protect their legitimate business interests, trade secrets, and competitive advantage. These agreements are particularly relevant when employees have access to sensitive information, key client relationships, or specialized knowledge that could be harmful if used by competitors. Under Belgian law, a Non-Compete Agreement must meet specific criteria to be enforceable, including geographical limitations, time restrictions (not exceeding 12 months), and mandatory compensation requirements. The agreement must balance the employer's need to protect business interests with the employee's right to work, as protected by Belgian constitutional law and EU regulations. It's commonly used for senior positions, specialized technical roles, or employees with access to confidential information, and must be carefully drafted to ensure compliance with both Belgian employment law and industry-specific regulations.

What sections should be included in a Non Compete Agreement?

1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers

2. Background: Context of the agreement, including the employment relationship and legitimate business interests being protected

3. Definitions: Key terms used in the agreement, including 'Competitive Activity', 'Restricted Territory', 'Restricted Period', and 'Confidential Information'

4. Scope of Restrictions: Detailed description of prohibited activities, aligned with Belgian law requirements for specific and limited restrictions

5. Geographic Limitation: Clear definition of the territorial scope where the non-compete obligations apply (must be reasonable and specifically defined under Belgian law)

6. Duration: Specification of the non-compete period (maximum 12 months under Belgian law)

7. Financial Compensation: Details of the mandatory compensation payment (minimum of 50% of gross salary for the restriction period)

8. Exceptions and Permitted Activities: Activities that are explicitly allowed despite the non-compete restrictions

9. Acknowledgments: Employee's confirmation of understanding and acceptance of the restrictions

10. Breach and Remedies: Consequences of breaching the agreement and available legal remedies

11. Governing Law and Jurisdiction: Specification of Belgian law as governing law and designation of competent courts

What sections are optional to include in a Non Compete Agreement?

1. Industry-Specific Provisions: Additional provisions required for specific industries or sectors, particularly relevant when collective bargaining agreements apply

2. International Scope: Additional provisions for employees working across multiple jurisdictions or in international roles

3. Garden Leave: Provisions for paid leave during the notice period, if applicable

4. Return of Company Property: Provisions regarding the return of company materials and equipment, relevant when combined with confidentiality obligations

5. Non-Solicitation: Additional restrictions on soliciting employees or customers, if separate from main non-compete obligations

6. Severability: Provisions for maintaining validity of remaining clauses if any part is found unenforceable

7. Termination Scenarios: Specific provisions for different types of employment termination scenarios

What schedules should be included in a Non Compete Agreement?

1. Schedule 1 - Restricted Territory Map: Detailed map or list of geographical areas covered by the non-compete restrictions

2. Schedule 2 - Compensation Calculation: Detailed breakdown of how the non-compete compensation will be calculated

3. Schedule 3 - Competitive Business List: List of specific competitors or types of businesses considered competitive

4. Schedule 4 - Employee's Current Role and Responsibilities: Description of current position and duties to define scope of restrictions

5. Appendix A - Acknowledgment Form: Separate signature page confirming employee's understanding and acceptance

6. Appendix B - Industry-Specific Terms: Additional terms or requirements specific to the relevant industry sector

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Belgium

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant Industries

Technology

Pharmaceuticals

Financial Services

Professional Services

Manufacturing

Research and Development

Telecommunications

Consulting

Retail (specialized/high-level)

Software Development

Biotechnology

Engineering

Sales and Distribution

Relevant Teams

Legal

Executive Leadership

Sales

Research & Development

Product Development

Business Development

Client Services

Technical Operations

Strategic Planning

Senior Management

Customer Success

Professional Services

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Business Development Manager

Research Scientist

Product Manager

Senior Consultant

Technical Lead

Account Executive

Regional Manager

Department Head

Senior Financial Analyst

Technical Architect

Operations Director

Head of Research

Marketing Director

Key Account Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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