Terug naar Encyclopedie
Arbeidsrecht

Non-Competition and Relationship Clause: Rules and Exceptions in Leiden

Learn everything about non-competition and relationship clauses in Leiden: the conditions, restrictions, and legal options in case of breach or nullification.

2 min leestijd

Non-Competition and Relationship Clause: What You Need to Know

A non-competition clause prevents an employee from taking up employment with a competing company after the end of the employment relationship.

Conditions for a Non-Competition Clause

  • Must be recorded in writing
  • Valid only with an adult employee
  • For a fixed-term contract: necessity of compelling business reasons

Non-Competition Clause in Fixed-Term Contracts

As of 2015, a non-competition clause in a fixed-term contract is only permitted if the employer clearly states in writing which crucial business interests justify it.

What is a Relationship Clause?

A relationship clause imposes a prohibition on maintaining contact with customers or relations of the employer after the end of the employment relationship. This is generally less strict than a non-competition clause.

Possible Nullification by the Court

A court may declare a non-competition clause invalid or adjust it if:

  • The employee is disproportionately disadvantaged
  • The clause is drafted too broadly or vaguely
  • The business interest is no longer compelling

Penalty Clause in Case of Breach

Often a penalty is linked to breaching a non-competition clause. However, a court may reduce this penalty if it is too high.

Forfeiture in Case of Blameworthy Conduct by Employer

If the employer acts seriously blameworthily, the non-competition clause may lapse.

Statutory basis: Article 7:653 DCC

Local Information Leiden

Court: District Court of The Hague, Leiden Location

Legal Aid Office: Juridisch Loket Leiden, Stationsweg 46