Non Compete Contract for the Netherlands

Non Compete Contract Template for Netherlands

A Dutch Non-Compete Contract is a legally binding agreement between an employer and employee that restricts the employee's ability to work for competitors or start a competing business for a specified period after employment termination. Under Dutch law, such agreements must be in writing, provide fair compensation, and include reasonable limitations in terms of duration and geographical scope. The agreement must balance the legitimate business interests of the employer with the employee's right to work, as protected under Dutch law. Typically limited to a maximum of 12 months, these agreements require careful drafting to ensure enforceability under the Dutch Civil Code (Burgerlijk Wetboek).

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What is a Non Compete Contract?

The Non-Compete Contract is essential for businesses operating in the Netherlands seeking to protect their legitimate business interests, trade secrets, and valuable client relationships. This document is typically implemented when onboarding new employees or during significant role changes where employees gain access to sensitive information or strategic relationships. The agreement must comply with Dutch law requirements, including Article 7:653 of the Dutch Civil Code, which mandates written form, fair compensation, and reasonable restrictions. The document outlines specific limitations on post-employment activities, typically lasting up to 12 months, and must balance employer protection with employee rights. Non-Compete Contracts are particularly crucial in knowledge-intensive industries and for roles involving access to proprietary information or key client relationships.

What sections should be included in a Non Compete Contract?

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

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

3. Definitions: Key terms including 'Competitive Activities', 'Restricted Period', 'Territory', 'Confidential Information', and 'Competitors'

4. Scope of Restrictions: Detailed description of prohibited competitive activities and specific limitations

5. Duration: Time period for which the non-compete obligations will apply (typically maximum 12 months under Dutch law)

6. Geographic Scope: Specific geographical areas where the restrictions apply

7. Compensation: Financial compensation for the duration of the non-compete period as required by Dutch law

8. Employee Acknowledgments: Employee's confirmation of reasonableness and understanding of restrictions

9. Enforcement and Remedies: Consequences of breach, including penalties and enforcement mechanisms

10. Severability: Provision ensuring remainder of agreement stays valid if any part is found unenforceable

11. Governing Law and Jurisdiction: Specification of Dutch law application and competent courts

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

1. Garden Leave: Provisions for paid leave during notice period to protect business interests, used when immediate separation is preferred

2. International Scope: Additional provisions for employees working across multiple jurisdictions, used for international roles

3. Customer Non-Solicitation: Specific provisions preventing contact with customers, used for customer-facing roles

4. Employee Non-Solicitation: Provisions preventing recruitment of other employees, used for management positions

5. Post-Termination Notifications: Requirements to notify new employers of restrictions, used for senior positions

6. Training Compensation: Provisions regarding repayment of training costs, used when significant training investment is involved

7. Monitoring Compliance: Specific mechanisms for monitoring adherence to restrictions, used for high-risk positions

What schedules should be included in a Non Compete Contract?

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

2. Schedule 2 - Competitor List: Specific companies or organizations considered competitors

3. Schedule 3 - Compensation Calculation: Detailed breakdown of compensation during non-compete period

4. Schedule 4 - Key Customers: List of protected customer relationships if customer non-solicitation is included

5. Appendix A - Confidential Information: Detailed description of protected confidential information and trade secrets

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

Netherlands

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Pharmaceuticals

Manufacturing

Research and Development

Consulting

Software Development

Telecommunications

Biotechnology

Engineering

Sales and Marketing

Media and Entertainment

Relevant Teams

Sales

Research & Development

Product Development

Executive Leadership

Marketing

Client Services

Information Technology

Business Development

Operations

Strategy

Human Resources

Legal

Engineering

Data Analytics

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Account Manager

Software Engineer

Research Scientist

Product Manager

Business Development Manager

Senior Consultant

Technical Lead

Marketing Director

Financial Analyst

Operations Manager

Data Scientist

Strategic Planning Director

Client Relations Manager

Senior Developer

Regional Sales 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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