Knowledge Base

Welcome to the Expatax Knowledge Base containing hundreds of answers to questions we received about topics concerning tax, payroll, accounting, legal, business etc. related to the Netherlands. Search in our Knowledge Base or browse the different categories. Expatax is a Dutch tax and accounting firm specialized in assisting international workers, freelancers and companies. Don't hesitate to contact us if you need assistance or check our website.

What is a non-competition clause ("concurrentiebeding")?

Non-competition clause

An employment contract may contain a non-competition clause. What is a non-competion clause or "concurrentiebeding"?

Restriction to work in a comparable job or for competitors

After termination of the employment contract the employee may be restricted in accepting comparable jobs or employment in enterprises within a  certain distance from the previous place of work. This is the so-called ‘non-competition clause’. The clause can only be agreed upon in writing and with a person of 18 years or older. A non-competition clause is usually effective for a period of one year after the termination of the employment agreement but also a different period can be agreed. Parties may agree that a penalty must be paid in case of non-compliance.

A non-competition clause must be carefully phrased. If the employee should request so, the court of justice may limit the scope of the clause or set the clause aside if it is of the opinion that the employee is disproportionately restricted in his re-employment. The court may also mitigate
(possible) penalties for non-compliance by the employee. In addition, the court may fix a compensation payable to the employee if the former employer wishes to enforce the clause.

Attached Files
There are no attachments for this article.
Comments (1)
Comment by Evgueni on Tue, Mar 1st, 2016 at 6:04 PM
Hi, I am working in the Netherlands in 2016 and am receiving a non competion indemnity from France from my previous employer. How should I declare it on my tax return for 2016? I will already be paying tax on it in France. Kind regards
Security Code Security Code
Related Articles RSS Feed
What are the rules with respect to vacation days?
Viewed 2564 times since Sun, Feb 17, 2013
Do we have to offer a minimum salary to our part time director?
Viewed 1550 times since Fri, Aug 8, 2014
Does an employer legally have to offer a written employment contract to the employee?
Viewed 1875 times since Sat, Feb 16, 2013
Which information should a pay slip contain?
Viewed 7522 times since Sun, Feb 17, 2013
From 1 January 2012 the requirements with regards to delaying a day off change.
Viewed 2296 times since Mon, Nov 7, 2011
What are the public holidays in the Netherlands in 2013?
Viewed 14196 times since Wed, Jan 9, 2013
What is the minimum wage in the Netherlands in 2015?
Viewed 14301 times since Thu, Oct 30, 2014
What is the minimum wage in the Netherlands in 2016?
Viewed 10319 times since Mon, Nov 23, 2015
30% tax calculator - gross to net calculation Dutch salary
Viewed 205885 times since Fri, Feb 21, 2014
Taxation of a company car
Viewed 1909 times since Thu, Nov 26, 2015