A non-compete clause (concurrentiebeding) restricts what an employee may do after the employment ends, usually by prohibiting work for a competitor or the setting up of a competing business for a defined period and area. It is one of the most litigated clauses in Dutch employment contracts, and one of the most often unenforceable.
Legal basis
Article 7:653 of the Dutch Civil Code governs the clause. It is valid only if agreed in writing with an employee who has reached the age of eighteen. In a fixed-term contract it is valid only if the employer has set out in writing, in the clause itself, the compelling business interests that make it necessary. A general statement that the employer wants to protect its market is not enough; the justification must be specific to the role.
The court may annul the clause in whole or in part if the employee is unfairly prejudiced in relation to the interest the employer is protecting, and may award compensation for the period the employee is restricted. An employer who terminates in a seriously culpable way cannot rely on the clause at all.
What makes a clause hold up
Scope is what decides most cases. A clause limited to genuinely competing activities, running for six to twelve months, and covering the region where the employer actually operates has a reasonable chance of surviving. A clause covering the whole of the Netherlands for two years, imposed on an employee with no client contact and no access to confidential information, generally does not.
A change of role can also matter. Where the employee’s position has changed substantially since signing, the clause may need to be agreed again to remain effective.
Reform under way
A bill to modernise the non-compete clause was announced by the government in June 2026. It would limit the clause to a maximum of one year, oblige the employer to pay compensation when invoking it, and require the geographical area to be specified. At the time of writing the bill had been sent to the Council of State and had not yet been submitted to parliament, so the rules above continue to apply.
Related terms
See also non-solicitation clause (relatiebeding) and settlement agreement.
Our employment lawyers in the Netherlands assess whether a clause holds and negotiate releases from it.
