The Netherlands Civil Code's Section 7:653 governs non-compete agreements (BW). A non-compete clause is described in this article's paragraph 1 as a provision that exists between an employer and an employee that limits the employee's eligibility for a certain type of activity or job upon termination of the agreement.
Are there restrictions to a non-compete clause?
The idea that a non-compete provision is a broad policy may come from this term in the civil code. This is somewhat accurate because the non-compete clause really restricts one's ability to choose their employment in accordance with Section 19, paragraph 3 of the Dutch Constitution.
However, legislation to forbid non-compete clauses in contracts has not yet been drafted. However, some limitations have been set, and in some circumstances, the court may decide to limit the application of the in question non-compete provision.
The same part of legislation covers legal limitations that may be put on a non-compete clause, to the degree that a non-compete clause is only lawful if the employment agreement BSA employee who is at least 18 years old and the employer has agreed in writing to an indefinite time.
Conditions for a non-compete clause
The example above shows that a non-compete agreement is only legal if three requirements are satisfied:
Unlimited time
The employment agreement must be for an indefinite amount of time as the first requirement. A non-compete provision is only permitted to some extent if this is not the case and the employment is, as a result, for a certain length of time.
Written documentation
The necessity of a written agreement is the second prerequisite. The non-compete stipulation has to be approved by both the employee and the employer in writing. Underlying the argument is the idea that the employee was in a position to carefully weigh the effects of the onerous language in the agreement.
The employee must have signed a written non-compete clause in their employment contract or another employee benefit plan, according to the Netherlands Supreme Court, in order for the requirement of a written agreement to be met. In these situations, the employee must also provide evidence that they were made aware of the written non-compete clause and that they gave their consent to it.
Because of this, it is not necessary to include the non-compete language in the employment agreement only because a formal agreement is required. The collective bargaining agreement (CAB) or similar employee benefits program that has this non-compete clause may be referred to in the employment agreement itself.
Becoming an adult
The employee must be of legal age in order for a non-compete provision to be valid. If a minor was given permission to agree to the relevant non-compete clause by their legal agent, the potential invalidity is not eliminated.
Important to keep in mind
Last but not least, it is important to note that a non-compete provision may be negotiated before, during, or after the employment relationship between the employer and the employee.
If you work in the Netherlands, your employment contract may have a non-compete provision. What we require to know about this provision is provided by EFI Lawyers.
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