Introduction
Suppose you have a partner who works at your employer's competitor, what should you do? Although personal relationships are basically private, in certain situations they can also have employment consequences. Especially when there is access to confidential company information, employers can take action. This blog explains the cases in which a partner working at a competitor can lead to termination of the employment contract and what the case law says about this.
Situation: partner employed by competitor
In some industries, information about strategy, rates or customer relationships is of great value. If an employee has access to this kind of competitively sensitive information, it could be problematic if his partner switches to a competitor.
The risk then arises not only from intentional leaks of information, but also from unintentional influence or conversations at the kitchen table. While having a relationship with someone at a competitor is not prohibited per se, it can put pressure on the working relationship,especially if the employee's job title carries increased risk.
Case study: employee and partner with competitor
A telling statement comes from a case in which an administrative assistant worked at a company with sensitive pricing information. Her husband, a member of the management team, transferred to a direct competitor. The employer reacted immediately by blocking her IT access and filed a request for termination of the employment contract with the subdistrict court on the h-ground.
Although there was no evidence of abuse, the judge found it plausible that the risk of inadvertent sharing of competitively sensitive information was real. The relationship of trust between employer and employee had been disrupted to such an extent, according to the judge, that employment could be terminated. The employer's interest took precedence in these particular circumstances.
Importance of clear internal rules
To avoid legal proceedings, it is wise for employers to establish policies on potential conflicts of interest. Consider codes of conduct, reporting requirements for family ties or relationships with competitors, and clear confidentiality agreements.
For employees, be open about potential risks and report relevant changes in the private situation. Open communication in many cases can help maintain trust and seek appropriate solutions together.
Conclusion
A personal relationship with a partner who works for the competitor need not automatically lead to dismissal, but it may justify it in certain cases. Especially if there is access to sensitive information and the trust between employer and employee comes under pressure. Transparency, clear internal rules and careful consideration on both sides are essential to prevent escalation.
This blog was written by mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and supports entrepreneurs and employees on a daily basis with a variety of employment law issues. From dismissal cases to drafting watertight contracts and regulations - 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 dismissal. Please feel free to contact us .
April 2025
