A non-compete clause (concurrentiebeding) in a Dutch employment contract is valid if it is agreed in writing with an employee aged 18 or over, under Article 7:653 of the Dutch Civil Code (BW). The main exception: in a fixed-term contract the clause is only valid if the contract itself explains, in writing, the compelling business interest (zwaarwegend bedrijfs- of dienstbelang) that makes it necessary.
Even a valid clause is not absolute. The subdistrict court (kantonrechter) can set it aside in whole or in part, and a bill that would cap non-competes at 12 months and require the employer to pay for them is now with the Council of State (Raad van State). Until that bill is passed and in force, current Article 7:653 BW applies.
Table of contents
What is a non-compete clause and what does it restrict?
A non-compete clause restricts you from working for a competitor, or starting a competing business, for a set period after your employment contract ends. Dutch courts apply the same rules of Article 7:653 BW to the narrower clauses that often appear alongside it.
| Clause | What it restricts |
|---|---|
| Non-compete (concurrentiebeding) | Working for competitors or in the same line of business |
| Non-solicitation | Approaching clients or recruiting former colleagues |
| Relationship clause (relatiebeding) | Doing business with the employer’s clients or suppliers |
The interest an employer may protect is concrete: client relationships, pricing and strategy, and trade secrets. Trade secrets also enjoy separate protection under the Dutch Trade Secrets Protection Act (Wet bescherming bedrijfsgeheimen), whether or not there is a non-compete. Simply wanting to keep staff from leaving is not an interest the court will protect.
When is a non-compete clause valid under Dutch law?
The clause must be in writing and signed by an employee who was 18 or over at signing. A clause agreed orally, or with a minor, is void under Article 7:653 BW, regardless of the employer’s interest.
The clause should say which activities are restricted, for how long and in which area. Article 7:653 BW does not require a duration or an area today, but a clause that leaves them open is much harder to defend before the kantonrechter.
What applies to a fixed-term contract?
In a fixed-term contract, a non-compete is only valid if the contract contains a written justification of the compelling business interest. Without that justification the clause is void; a standard sentence about “protecting the company’s interests” does not meet the requirement.
For a permanent contract no justification in the contract is required. The employer only has to make its interest good if you challenge the clause before the court.
When can a court limit or set aside the clause?
The kantonrechter can annul the clause in whole or in part if you are unfairly disadvantaged compared with the employer’s interest (Article 7:653 BW). In practice the court often narrows the clause instead of striking it out: it shortens the period, reduces the area or limits the restricted activities.
The court weighs your interest in earning a living against the employer’s interest in protecting clients and knowledge. Relevant factors are your position and salary, your access to confidential information, direct client contact, the length of the restriction and how you left. Restrictions of six months to a year are upheld more often than clauses of several years.
A clause can also lose its force for another reason: if the contract ends because of the employer’s seriously culpable act or omission (ernstig verwijtbaar handelen of nalaten), the employer cannot rely on it. If the clause stays in place but substantially hinders you from working elsewhere, the court can order the employer to pay you compensation for the period of the restriction, unless the contract ended through your own seriously culpable conduct.
How do you challenge the clause in practice?
Most disputes are decided in summary proceedings (kort geding) before the kantonrechter, because a new job cannot wait months. You can ask the court to suspend the clause provisionally; the employer can in turn ask for an order prohibiting you from working for the competitor.
Act quickly. The court looks at the situation when it decides, so file before you start the new job or as soon as the employer threatens to enforce the clause.
What happens if you breach the clause?
Most clauses contain a penalty clause, for example a fixed amount per breach plus an amount per day the breach continues. The court can reduce an excessive penalty if fairness clearly demands it (Article 6:94 BW).
Besides the penalty, the employer can ask for an injunction against the competing work and, where the clause allows it, for damages. It has to show that your new activity actually falls within the clause. If the clause itself is void or annulled, no penalty is owed.
What would the 2026 bill change?
The bill to modernise the non-compete was sent to the Council of State in June 2026; the government aims to submit it to the House of Representatives (Tweede Kamer) at the end of 2026. According to the government it responds to the finding that about one in three employees is now bound by a non-compete, many of whom have no access to trade secrets or client data.
The main changes announced by the government, none of which apply yet:
- a maximum duration of 12 months after the contract ends;
- compensation paid by the employer for each month it invokes the clause (the earlier consultation version set this at 50% of the last monthly salary);
- a duty to state in the clause the geographic area it covers;
- a duty to tell the employee in good time, reportedly at least one month before the contract ends, whether the clause will be invoked.
The final text may still change in parliament. Clauses agreed today are therefore assessed under current Article 7:653 BW; the bill may contain transitional rules for existing contracts.
What should you check as an employee?
Check the clause before you sign, and again before you accept a new job. Five points matter most.
- Is the clause in writing, and were you 18 or over when you signed it?
- If you have a fixed-term contract: does the contract state a specific compelling business interest?
- Do the duration, area and restricted activities match your role and your access to clients or know-how?
- How high is the penalty, and is it per breach or per day?
- Did the contract end through the employer’s seriously culpable conduct?
What should you check as an employer?
A clause only protects you if it survives a review by the kantonrechter. Check these points for each employee.
- Is there a concrete interest to protect, such as client relationships or technical know-how, for this specific position?
- In a fixed-term contract: is the compelling business interest written out specifically, not in standard wording?
- Are duration, area and restricted activities no wider than that interest requires?
- Would a non-solicitation or relationship clause be enough?
- Has the employee’s role changed so much that the clause should be signed again?
What can we do for you with a non-compete clause?
Our employment lawyers advise employees and employers on non-compete and relationship clauses under Article 7:653 BW.
- We review the clause and tell you whether it is valid and how a court is likely to weigh it.
- We draft or rewrite clauses, including the written justification required in fixed-term contracts.
- We negotiate a release, a narrower clause or compensation with the other party.
- We start or defend summary proceedings before the kantonrechter on suspension or enforcement of the clause.
- We assess a penalty claim and whether it can be reduced.
Summary
- A non-compete is valid if agreed in writing with an employee aged 18 or over (Article 7:653 BW).
- In a fixed-term contract the clause also needs a written justification of the compelling business interest.
- The kantonrechter can annul or narrow the clause and can award compensation if it substantially hinders you.
- The clause lapses if the contract ended through the employer’s seriously culpable conduct.
- The 2026 bill (12-month cap, compensation, defined area) is not yet in force.
Frequently asked questions
Is a non-compete clause valid in a fixed-term contract?
Only if the contract contains a written justification of the compelling business interest that makes the clause necessary (Article 7:653 BW). Without that justification the clause is void.
How long may a Dutch non-compete clause last?
Current law sets no maximum. Courts decide case by case and uphold six to twelve months more often than several years. The pending bill would cap every clause at 12 months, but it is not yet in force.
Does my employer have to pay me while the non-compete applies?
Not under current law. The kantonrechter can award compensation if the clause substantially hinders you from working elsewhere. The pending bill would make compensation mandatory whenever the employer invokes the clause.
Does the clause still apply if I was dismissed?
Yes, in principle. The employer cannot rely on it if the contract ended through its own seriously culpable conduct, and a court may weigh a dismissal in your favour when deciding whether to set the clause aside.
