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New employment rules 2015: Non competition clause

Effective from January 1, 2015 an employment contract for a fixed term can in principle no longer contain a non competition clause or relationship clause. Non-competition implies you cannot work for a competing company, relationship clause implies the former employee does not contact relations of the former employer, including clients.

Should the company be able to substantiate important (quite pressing) reasons that a non competition clause needs to be implemented in the fixed term employment agreement, then a non-compete clause and/or relationship clause might be agreed. However the court may annul the clauses at the request of the employee or reimburse the employee if the clause is upheld. Further in the event the company is deemed culpable for the non-renewal/extension of the fixed term agreement, the company cannot invoke the clause(s).

2015: Non competition clause

Non competition clauses already existing before January 1, 2015 will remain in force. If the client has the opinion that this is important and also would like to keep on the employee, change the employment agreement to an indefinite contract, preferably with a starting date before January 1, 2015.

After 1 January 2015 non-competition and relationship clauses in indefinite term agreements can be agreed without the restrictions as indicated above. The court could –as is today and will be with the fixed term agreements as described above- mitigate the clauses at the request of the –former- employee.

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