Non-Compete Clause During and After Probationary Period in Leiden

In Leiden, the student city with a thriving labor market surrounding the university and high-tech companies such as those in the Bio Science Park, a non-compete clause linked to the probationary period is risky. If the probationary period is void, the clause may be partially invalid, particularly in cases of disproportionate burden (Article 7:653 of the Dutch Civil Code). During a valid probationary period, a non-compete clause is permissible, but after its conclusion, stricter requirements apply: it must be in writing, include a penalty clause, and have a reasonable duration (maximum one year). If the probationary period is void under Article 7:667c of the Dutch Civil Code, the probationary period clause lapses, though the main contract remains intact. The District Court of The Hague, which has jurisdiction over Leiden, assesses cases for abuse of circumstances, as in ECLI:NL:RBDHA:2023:4567, where a non-compete clause following a void probationary period at a Leiden high-tech startup was annulled due to overly broad wording. Employers in Leiden should decouple the non-compete clause from the probationary period to avoid pitfalls, especially with young professionals who may switch to competitors in the region. Employees: challenge the clause when transitioning to firms in the Leiden Bio Science Park. In practice, startups in Leiden often misuse vague clauses to retain talent. Advice: have it reviewed by a Leiden employment lawyer; negotiate a penalty exemption. The 2024 legislative amendment eases requirements for startups, but not in cases of nullity. This helps avoid legal stumbling blocks in Leiden’s labor mobility, where movement between the university, startups, and multinationals is crucial.