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