A non-compete clause is one that prohibits you from working for a competitor or engaging in competitive activities as a self-employed person. But is it actually valid?
When is it allowed
Almost 4 out of 10 employment contracts contain an agreement on non-competition clauses. But such an agreement is not always valid. For example, a non-competition clause is not intended to merely prevent employees from transferring to another company. As an employer, you must have a genuine interest in protecting trade secrets and other competitively sensitive information. And it may be permissible with specialists or commercial employees, for example.
When is it not allowed
This means right away that non-competition agreements may not be agreed upon with every employee.
- non-competition clause is almost never valid in a temporary employment contract
- competition clause must be agreed upon in writing
- an employee must be of age
Not agreeing to non-compete clause
Want to get rid of your non-compete agreement? If so, negotiate this first with your employer. In extreme cases, you can take it to court.
And don't just agree to a non-compete clause when you sign your employment contract. It is often in there by default, but this is often unnecessary. This can avoid hassles.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.nl is happy to think with you if you have questions about terms and conditions of employment. Please feel free to contact us.
December 2024
