The Not To Compete Agreement is a crucial document used in Dutch employment relationships to protect an employer's legitimate business interests following an employee's departure. This agreement becomes relevant when employees have access to confidential information, trade secrets, strategic plans, or valuable customer relationships. Under Dutch law, such agreements must be in writing and signed by an adult employee, include fair compensation for the restriction period, and contain reasonable limitations in terms of duration (typically maximum 12 months) and geographical scope. The agreement must specifically detail the restricted activities and provide clear compensation terms as required by Dutch Civil Code Article 7:653. It's particularly important for senior positions, technical roles, and customer-facing positions where employees gain significant insider knowledge or customer relationships.
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1. Parties: Identification of the employer and employee/former employee, including full legal names and addresses
2. Background: Context of the agreement, including the employment relationship and legitimate business interests being protected
3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Competitive Activities', 'Territory', and 'Restricted Period'
4. Scope of Non-Compete: Detailed description of prohibited competitive activities and specific industry sectors covered
5. Duration: Specific time period for the non-compete obligations, typically not exceeding 12 months under Dutch law
6. Geographic Scope: Clear definition of the territorial limitations of the non-compete restrictions
7. Compensation: Details of the compensation to be paid during the non-compete period, as required by Dutch law
8. Exceptions: Specific circumstances under which the non-compete restrictions do not apply
9. Enforcement: Provisions for enforcement including penalties for breach and notification requirements
10. Severability: Clause ensuring that if any provision is found invalid, the remainder of the agreement remains in force
11. Governing Law: Explicit statement that Dutch law governs the agreement and jurisdiction for disputes
1. Non-Solicitation: Additional restrictions on soliciting customers or employees, included when broader protection is needed
2. Garden Leave: Provisions for paid leave during notice period, used for sensitive positions
3. Training Costs: Repayment provisions for training costs, included when significant training investment has been made
4. International Scope: Additional provisions for international operations, included when the business operates across multiple countries
5. Industry-Specific Restrictions: Detailed restrictions specific to particular industries or professional roles
6. Early Termination: Conditions under which the non-compete obligations may be terminated early
7. Alternative Employment: Provisions for approval process of alternative employment during restriction period
1. Schedule 1 - Compensation Calculation: Detailed breakdown of compensation calculation during the non-compete period
2. Schedule 2 - Restricted Territory: Detailed maps or lists of geographical areas covered by the restrictions
3. Schedule 3 - Restricted Activities: Comprehensive list of specific prohibited activities and competitors
4. Appendix A - Notification Form: Template for employee to notify employer of potential new employment
5. Appendix B - Compliance Certificate: Form for periodic certification of compliance with restrictions
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