A non-compete clause (non-competition agreement) in the Netherlands is a clause in an employment contract that restricts a worker from working for competitors or starting a similar business for a certain time and within a certain region after leaving their job. Such clauses are legal under Dutch law if they meet specific requirements – notably, the agreement must be in writing and the employee must be an adult (18 or older) at the time of signing. However, Dutch authorities have recognized that non-compete clauses are often overused and overly broad, limiting employees’ career mobility. New legislation expected in 2025 will impose stricter rules on non-competes (including a maximum one-year duration, required geographic scope, and mandatory compensation for employees during the restricted period). Below, we explain in detail how non-compete agreements work in the Netherlands, what the current and upcoming rules are, and how you as an expat can deal with a non-compete clause in your Dutch employment contract.
What is a Non-Compete Clause under Dutch Law?
A non-compete clause (in Dutch: concurrentiebeding) is a provision in an employment contract that aims to protect the employer’s business interests by limiting what the employee can do after the employment ends. In practice, a non-compete clause prohibits an employee from working for a competing company or starting a similar business on their own for a certain period after leaving the employer. Most permanent job contracts in the Netherlands include a non-compete clause as a standard element, especially in fields where employers worry about confidential information or client relationships.
Typical Contents: A non-compete clause should clearly define the scope of the restriction. A well-drafted clause usually specifies:
- Restricted Activities or Role: The kind of work or functions the ex-employee is not allowed to perform (often those similar to their role at the former employer).
- Competitors or Industry: The companies or industry sector for which the employee is barred from working (sometimes an explicit list of competitors).
- Geographical Area: The region in which the restriction applies – for example, within the Netherlands, within Europe, or even worldwide. (Dutch law currently doesn’t impose a geographic limit, so a worldwide non-compete is possible, though a court may limit it if it’s unreasonably broad.)
- Time Period: How long the restriction lasts after employment ends. Typically, Dutch non-competes last 1 year, sometimes 2 years, after leaving the job. There is no absolute legal maximum under current law, but the clause “may not limit your employee unreasonably”, meaning it shouldn’t make it impossible for the person to find work elsewhere. (As we’ll see, new legislation will legally cap non-compete duration at 1 year in the near future.)
- Penalty Clause: Many non-compete agreements include a penalty or fine that the ex-employee must pay for each violation of the clause. This serves as a deterrent – for example, a clause might say that if you join a competitor in breach of the agreement, you owe a certain sum (or a daily/weekly penalty) to your former employer. Dutch courts will enforce reasonable penalty amounts, but exorbitant penalties can be reduced by a judge if deemed excessive.
In sum, a non-compete clause in the Netherlands defines where, when, and in what roles a former employee cannot work after leaving, in order to protect the legitimate business interests of the employer (such as trade secrets, client relationships, and other confidential information). It must be carefully written so that both parties know exactly what restrictions apply.
When is a Non-Compete Clause Valid in the Netherlands?
Not every non-compete clause is enforceable. Dutch law (Article 7:653 of the Civil Code) sets strict conditions for a non-compete clause to be legally valid:
- Written Agreement: The non-compete must be agreed to in writing (usually as part of the employment contract, or an addendum to it). This ensures the employee has formally acknowledged the clause. An oral agreement or a mere verbal promise not to compete won’t hold up – it has to be on paper (or in a digital document) and signed or otherwise accepted in writing.
- Employee is an Adult: The employee must be 18 years or older at the time of signing the agreement. Non-compete clauses cannot be applied to minors. If you signed your contract before turning 18 (for instance, as a student or trainee), a non-compete in that contract is not valid under Dutch law.
- Permanent vs. Temporary Contracts: In general, non-compete clauses are only allowed in permanent (open-ended) employment contracts. For fixed-term (temporary) contracts, Dutch law bans non-compete clauses unless the employer can demonstrate a “legitimate business interest” that necessitates the clause. In other words, if you have a temporary contract, a non-compete clause is only valid if the employer included a written explanation in the contract as to why it’s truly needed】. This has been the rule since 1 January 2015, to prevent casual use of non-competes for short-term jobs. If no specific justification is provided for a non-compete in a temporary contract, that clause cannot be enforced – it’s effectively null and void. (For example, an employer might justify a non-compete in a one-year contract by saying the role involves access to sensitive research data or client lists that the company must protect.) If you’re an expat on a temporary contract and you see a non-compete clause with no reasoning given, you should know that clause likely has no legal effect.
- Reasonable Scope: Although not a formal “requirement” written in the statute, a non-compete clause should be reasonable in scope (as mentioned earlier). If a clause is drafted so broadly that it “unreasonably restrains” the employee, a court may decide the clause is partially or wholly unenforceable. For instance, a worldwide non-compete that lasts for five years might technically be written in the contract, but in practice a Dutch judge would almost certainly scale it down if challenged, because it would severely limit the employee’s fundamental right to work. The law doesn’t impose explicit limits on geography or length in the current Article 7:653 BW, leaving it to case-by-case assessment of reasonableness. So, while a non-compete clause could say “worldwide for 3 years,” the enforceability of that in real life would be questionable. Generally, Dutch employers stick to 1 year (sometimes 2) and define a region or specific competitors to make the clause more likely to hold up.
If these conditions are not met, the non-compete agreement won’t hold up in court. For example, if you signed a contract with a non-compete when you were 17, or if your temporary contract had a non-compete with no justification, you likely cannot be held to it legally. Always check these basics first to assess if your non-compete is valid.
Non-Solicitation (“Relationship”) Clauses: Alongside true non-compete clauses, Dutch contracts may also contain a non-solicitation clause (sometimes called a relationship clause). This is related but slightly different: instead of barring you from joining a competitor, a non-solicitation clause prohibits you from contacting or doing business with your former employer’s clients, prospects, or other business relations for a certain time. The idea is to prevent ex-employees from “taking the customers” or key relationships to a new employer or their own new business. Non-solicitation clauses have the same validity requirements – they must be in writing, only used in permanent contracts (or with justification in temporaries), and reasonable in scope. Often, a contract’s restrictive covenant section will include both: a non-compete (don’t join a competitor) and a non-solicit (don’t poach our clients). Keep in mind that these relationship clauses do not stop you from taking a job with a competitor per se, as long as you don’t approach the former employer’s clients – they’re narrower in scope. But in practice, if a competitor’s clientele overlaps heavily with your old employer’s, a non-solicitation clause can be almost as restrictive as a non-compete.
How Does a Non-Compete Clause Work in Practice?
When you agree to a non-compete clause and later leave your job (whether by resignation or dismissal), the clock on that clause starts ticking from your last day of employment. For example, if you have a 1-year non-compete, it typically means for 12 months after your employment ends, you cannot work in certain specified roles/industry or region as defined in the clause. Here’s how things play out practically in the Netherlands:
- Applicability After Leaving: The non-compete continues to apply even after your employment contract ends. Some people assume that if you are fired or if your contract ends naturally, the clause “automatically” expires – this is a myth. In most cases, the non-compete remains in force after you leave, regardless of whether you quit or were let go. Only if you have a mutual agreement or a specific contractual term that cancels it upon certain types of termination would it not apply, or if a judge later nullifies it. For instance, if you’re dismissed for reasons not your fault (like a redundancy or reorganization), many Dutch employers voluntarily choose not to enforce the non-compete as a goodwill gesture, but that’s not automatic or guaranteed by law. So assume it’s still active unless you get a release in writing.
- Enforcement by the Employer: If you take a new job that your former employer believes breaches the non-compete, they have the right to enforce the clause. Typically, enforcement involves reminding you and the new employer of the restriction and possibly going to court to seek an injunction or penalty. Under Dutch law, an employer can ask a court to forbid you from working at the new job if it violates the non-compete, and the court can indeed issue an order enforcing the clause or imposing the contract’s penalty. The employer may also claim damages if they suffered provable losses due to the breach. However, Dutch courts will also balance the interests (see next point), so enforcement isn’t automatic – the employer must show the clause is reasonably protecting a legitimate interest.
- Challenging a Non-Compete (Court Intervention): As an employee, you have the option to challenge or seek relief from a non-compete clause in court if it’s impeding your career. You can start summary proceedings (kort geding) to ask a judge to (partially) nullify or suspend the non-compete. The court will then examine the specifics of your situation. Under Article 7:653(3) of the Civil Code, a judge can void or soften a non-compete if it unfairly hampers the employee relative to the employer’s interests. In practice, judges are sometimes reluctant to scrap a non-compete entirely without good reason. They often choose a middle ground: for example, a judge might shorten the duration (say, from 12 months to 6 months) or limit the geographic scope of the clause rather than nullifying it outright. Each case is decided on its own facts. The court will weigh factors such as: How specialized is your field and how tied are you to that industry? If your whole career is in a very niche field, a broad non-compete hurts you more. Are you getting a major career advancement or better conditions at the new job? If the new job is a big step up for you, that’s your interest to be weighed. What are your personal circumstances (family, location)? If moving or switching industries is especially hard for you, that counts in your favor. Did the employer invest heavily in your training or pay for courses? If yes, they have a slightly stronger reason to keep you from directly using that know-how at a competitor. Who initiated the termination of the employment? If the employer fired you (especially for reasons like economic redundancy), the fairness of holding you to the clause is more questionable than if you quit to go to a competitor. Does the new job truly pose a competitive threat? For example, are you going to a direct competitor in a role where you’ll use sensitive knowledge from the old job? If not (maybe you’re changing careers or moving to a different type of business), the employer’s interest is weaker. All these factors and the breadth of the clause’s wording will be considered by the judge. If the clause is overly broad on paper, courts are more inclined to throw it out or trim it down. Ultimately, the judge’s task is to see if enforcing the non-compete would unfairly disadvantage you versus how much the employer really needs it to protect their business. The burden is on the employer to prove there’s a real business asset at risk (like trade secrets, client connections, or other proprietary interests) – simply wanting to retain employees or keep talent from competitors is not a valid reason by itself.
- Consequences of Breach: If you violate a non-compete clause (for instance, you secretly join a competitor or start a competing side business in the prohibited timeframe), you will likely owe the contractual penalty immediately for the breach. Most contracts stipulate a fixed sum or formula, and that becomes due as soon as the breach occurs. The employer might send you an invoice or letter demanding the penalty. If there’s no penalty clause, the employer can still sue for actual damages or ask the court to issue an order to stop you from continuing the competitive activity. For you as an expat employee, breaching the clause could not only mean a financial hit (paying fines/damages) but also legal trouble that could affect your residence/work permit situation if it escalates (for example, a court order preventing you from working for that new company). Important: Do not just ignore a non-compete clause hoping it won’t be enforced – that’s risky. It’s best to address the issue openly (see next section on how to handle it) rather than violating it and facing penalties.
- Changes in Circumstances: One more practical note – if your role or the nature of the business has significantly changed since you signed the non-compete, and the clause wasn’t updated, that could affect its enforceability. For example, if you were hired for a junior role with a non-compete, and years later you’re in a completely different position or the company’s business focus shifted, a court might find the clause doesn’t reasonably apply to your new situation. Major changes in employment terms without adjusting the non-compete can give you an argument that the clause should be invalid or renegotiated.
In summary, non-compete clauses do carry weight in the Netherlands, but they are not absolute. They must be used sparingly and fairly to protect genuine business interests, and there are mechanisms to challenge them if they unfairly block someone’s career. Next, we’ll look at important changes coming in 2025 that tighten the rules around these clauses.
Upcoming Changes to Non-Compete Laws in 2025
In response to concerns that non-compete agreements have become too common and restrictive, the Dutch government has been working on modernizing the law. A new bill – often referred to as the “Modernisation of the Non-Competition Clause” – was approved by the Council of Ministers on March 1, 2024. It proposes several major changes to Article 7:653 of the Civil Code (the law on non-competes), aiming to better protect employees and limit overuse of these clauses. As of mid-2025, this legislation has not yet taken effect (the initial plan for early 2025 implementation has been delayed, and it’s uncertain if it will come into force before the end of 2025). Nonetheless, it’s important for both employers and employees (especially expats planning their careers) to know what’s coming. Here are the key changes in the pipeline:
- Maximum Duration of 1 Year: Non-competition clauses will be legally limited to no more than 1 year after the end of employment. Currently, there is no explicit statutory max (though 1-2 years is common practice). Under the new law, any clause that purports to bind someone longer than 12 months will be invalid for the excess period – effectively capping all non-competes at one year. For example, a 2-year non-compete written into a new contract would automatically be treated as a 1-year clause by law.
- Mandatory Geographic Scope: Every non-compete must include a geographical limitation to be valid. Employers will have to specify the region or market in which the ex-employee can’t work (for instance, “within the Netherlands” or “within 50 km of Amsterdam” or “in Europe”). Clauses with no geographic area stated will not be enforceable under the new rules. This change is to prevent overly vague restrictions like “you can’t compete anywhere” – it forces employers to delineate the competitive market area more clearly.
- Justification Required for All Contracts: Right now, as discussed, only fixed-term contracts require a written justification for a non-compete. The new law will extend this requirement to permanent contracts as well. That means for any employment contract going forward, the employer must include a written explanation of the “substantial business interest” that justifies having a non-compete clause. If such a justification is missing or not specific, the clause will be invalid. This aims to stop the practice of just slapping a non-compete clause “just in case” – the employer will need to think about and state why it’s necessary (e.g. access to trade secrets, special client relationships, etc.). This change essentially universalizes the rule that’s been in place for temporary contracts since 2015, promoting transparency about why a non-compete is used.
- Mandatory Compensation for the Employee: Perhaps the biggest change is that if an employer actually invokes (enforces) a non-compete clause after employment, they will be required to pay the ex-employee financial compensation for the restricted period. The bill sets this compensation at a minimum of 50% of the employee’s last earned salary for each month that the non-compete is in effect. In other words, if you can’t work for a competitor for, say, 6 months, you should receive at least 50% of your former monthly pay for each of those 6 months (so, the equivalent of 3 months’ salary total) as compensation. Employers can agree to a higher amount, but not lower. The compensation must be paid promptly – the proposal says no later than the last day of the employment contract (essentially at the moment you leave and the non-compete obligation begins). If the employer fails to pay on time, they lose the right to enforce the non-compete. This change will dramatically shift the landscape: non-competes will become costly for employers to use, so they’ll likely only enforce them for key positions and will drop them for others rather than pay someone half salary to sit out of the job market.
- Advance Notice of Enforcement: The new rules introduce a duty for employers to inform the departing employee in advance if they intend to hold them to the non-compete. Specifically, the employer must notify the employee at least one month before the end of the contract that they will enforce the non-compete clause. If the employment ends unexpectedly (for example, summary dismissal or a sudden resignation without a long notice), then the employer has up to two weeks after the notice of termination to invoke the clause. If the employer does not timely notify the employee, the non-compete cannot be enforced. This measure is meant to give employees clarity before they leave – you’ll know whether you are free to pursue other jobs or if the employer is going to hold you to the restriction (and owe you compensation accordingly). No more surprise last-minute enforcements.
- Relationship Clauses Covered Too: These new rules (duration limit, justification, compensation, notice) will apply not just to classic non-competes but also to non-solicitation/relationship clauses. So, for instance, a non-solicitation clause preventing you from contacting clients will also have a max 1-year period and trigger the 50% compensation if enforced after you leave, etc. This ensures all post-contract restrictive covenants are treated similarly under the law.
- Transitional Provisions: The law will not apply retroactively to invalidate existing agreements entirely. Any non-compete clauses agreed before the new law takes effect will remain valid even if they don’t meet the new formal requirements (e.g. they might lack a geographic scope or have a 2-year duration). Employers won’t be forced to rewrite all old contracts immediately. However, the new rules will still affect enforcement of old clauses going forward. After the law is in force, if an employer enforces an older contract’s non-compete, they must adhere to the new rules on a practical basis – for example, even if an old contract says “2 years,” the employer can only enforce it for 1 year maximum, and they must pay compensation for that period. And absolutely, the compensation requirement will also apply to pre-existing non-competes once the law is in effect. So an employer can keep an old clause on paper, but if they invoke it, they have to pay the 50% salary comp and can’t enforce beyond 12 months. Essentially, old clauses that are “too broad” (over 1 year or no geo area) won’t have to be rewritten, but they’ll be limited by the new law’s substance if used.
These changes are expected to take effect sometime in 2025 (the exact date is not confirmed as it depends on parliamentary approval and publication in the official gazette). As of July 2025, it appears implementation may be delayed, but it’s on the horizon. For expat employees and employers alike, this reform will be significant. Employers will need to revisit their contract templates and possibly reserve budget for non-compete compensation, while employees will gain more clarity and fairness if they’re subject to a non-compete.
Latest News (2025): Apart from the general reform above, there was a recent development regarding companies in liquidation (bankruptcy situations). In July 2025, the Dutch cabinet proposed a bill addressing what happens to employees when a company is liquidated and then restarted. One aspect of that proposal is that if an employee loses their job due to the company’s liquidation and is not offered a new employment contract in a relaunch, any non-compete clause they had will automatically expire at the end of their employment. Currently, even if a company goes bankrupt, the non-compete could still bind the employee (which seems very harsh). The new rule is meant to prevent misuse of bankruptcy to free a company of staff and still keep them from working elsewhere. In short, if you’re an employee left without a job after your company fails, you shouldn’t be handcuffed by a non-compete clause – you’d be free to find a new job immediately. This specific change is part of a broader worker protection bill and complements the general trend of curbing non-competes.
How to Handle a Non-Compete Clause (Steps for Employees)
If you’re an expat working in the Netherlands and you discover you have a non-compete clause in your contract – especially when you’re considering a job change – it’s important to approach it carefully. Here are steps you can take to manage a non-compete clause and protect your career opportunities:
- Review the Clause in Detail: Start by carefully reading the exact wording of your non-compete agreement. Identify the key restrictions: How long does it last? Which region or countries does it cover? What type of jobs or competitors are off-limits? And is there a penalty stated for violations? Understanding the precise scope will help you determine what future moves might violate it. For example, the clause might say you can’t work for any direct competitor in the Netherlands for 1 year – that means perhaps working outside the Netherlands or in a different industry would be okay. Make note of any ambiguities or overly broad terms.
- Check for Validity Requirements: Evaluate whether the clause meets the legal validity conditions. Were you under 18 when you signed it? If so, it’s not valid. Is your contract temporary (fixed-term)? If yes, did the contract include a written justification for the non-compete? If not, the clause is likely invalid. These factors can immediately tell you how enforceable the clause really is. It may be worthwhile to consult an employment lawyer to verify validity. Sometimes just knowing that a clause wouldn’t hold up in court (due to a missing justification in a temp contract, for example) puts you in a stronger position to negotiate or ignore it. However, be cautious: never assume invalidity without proper confirmation, because if you’re wrong, the consequences can be serious.
- Discuss with Your Employer (or Former Employer): One of the best first steps is to have an open conversation with your employer (or your former employer, if you’ve already left) about the non-compete. Employers are sometimes willing to waive or release you from the non-compete if you ask, especially if the new job isn’t a direct threat to them. In practice, many employers include broad non-competes as a safeguard but may not intend to enforce them in every case. If you are leaving on good terms, explain why your new opportunity is important and how it won’t significantly harm the company. They might agree in writing to cancel or narrow the clause (for example, letting you go to a certain company or reducing the restricted period). It never hurts to ask – the worst they can say is no. If you’re still employed but considering an internal transfer or role change, you might also negotiate to remove the non-compete in a new contract at that point.
- Negotiate an Exit or Compensation: If your employer is intent on enforcing the non-compete, you could try to negotiate a form of compensation or arrangement. For instance, if they really want you not to join a competitor for a year, perhaps they can agree to pay you a portion of your salary for that period (some companies voluntarily offer garden-leave pay or severance in exchange for upholding a non-compete, even before it’s legally required). With the upcoming law, this concept of paying 50% salary will be mandatory, but even now you can raise the fairness issue: “If you prevent me from working, can you provide some support during that time?” Alternatively, you might negotiate a shorter duration or a narrower scope in exchange for something else. If you have any leverage (such as a critical role the employer needs you to assist with for a transition), you might use that to get concessions on the non-compete when you leave.
- Seek Legal Advice if Needed: If it looks like the non-compete is going to be a roadblock – for example, your dream job offer is on hold because of it – consult a Dutch employment lawyer (arbeidsrecht advocaat). Many law firms in the Netherlands, including those catering to expats, have experience handling non-compete disputes. A lawyer can assess the clause’s enforceability and may approach your former employer with a formal letter to negotiate release. Often, a letter from a lawyer laying out the reasons why the clause wouldn’t stand up in court can push an employer to relent without a court fight. If not, a lawyer can help you file a court injunction (short procedure) to (partially) lift the non-compete. Legal proceedings can move quickly in these matters – sometimes an interim relief judge (voorzieningenrechter) will hear urgent cases within weeks because they know job opportunities shouldn’t wait too long.
- Consider Timing and Alternatives: If possible, time your career moves strategically. Perhaps you can take a short break or sabbatical if the non-compete period is only a few months – use the time for further training or relocation if that’s feasible. Or maybe you can join a company that isn’t a listed “competitor” for the duration of the clause, then switch to your desired company later. Some expats consider working outside the restricted geographic area (if your clause is Netherlands-specific, you might work in Belgium or Germany for a year, for example, if that’s an option in your industry). While these workarounds aren’t ideal, they might be solutions if you want to avoid conflict. Always ensure, however, that any alternative job is truly outside the scope of your clause to avoid inadvertent breach.
- Do Not Breach the Clause Secretly: Finally, avoid the temptation to just ignore the clause and “sneak” to a new job hoping your old employer won’t notice. In the Netherlands, companies do keep an eye on where former employees go, especially in tight-knit industries. If you breach the non-compete, the penalty clause will hit immediately and you could face an injunction forcing you to leave the new job. This could also burn bridges and potentially even impact your right to stay in the country if your residence permit was tied to the old job (since a legal dispute might complicate things). It’s better to resolve the issue openly through the steps above. Only proceed to a potentially conflicting job if you either have the employer’s written blessing, the clause has been nullified, or you’re prepared to fight it legally with good chances. Being upfront and proactive is the safer path.
By following these steps, many expat employees manage to either get released from their non-compete or find a compromise. Remember, non-competes are common but not unbreakable. And with the upcoming legal changes, employees will have an even stronger hand (since the law will guarantee compensation and limit scope). Always weigh the risks and benefits, and don’t hesitate to get professional advice. Your career mobility is important – exactly what Dutch lawmakers are looking to protect by reining in unnecessary non-compete clauses.
Frequently Asked Questions (FAQs) about Non-Compete Agreements in NL
Can I be held to a non-compete clause if I am fired or laid off by my employer?
Usually, yes. A non-compete clause remains in effect even if your employment ends involuntarily (such as being fired or let go). There is a misconception that it only applies when you resign, but that’s not the case – the clause is tied to the end of the contract, regardless of who initiated it. That said, if you were dismissed for reasons like company reorganization or economic downturn, Dutch courts might be sympathetic to void or limit the clause if it severely harms your job prospects. In practice, many employers choose not to enforce non-competes on employees they lay off for redundancy, as a gesture of goodwill, but they are not legally obliged to drop it. Always check if your termination letter or settlement agreement says anything about releasing you from the non-compete. If not, assume it still applies and consider negotiating or going to court if it’s preventing you from finding new work.
Are non-compete clauses allowed in temporary or fixed-term contracts?
Generally no, not unless there’s a special reason. Since January 2015, Dutch law permits a non-compete in a temporary (fixed-term) contract only if the employer provides a written explanation of the necessity for it due to serious business interests. This reason must be very specific to the role – not just a generic statement. If your fixed-term contract has a non-compete clause without such a justification, that clause is invalid. In a permanent (open-ended) contract, no written justification is currently required (though employers often include one anyway to strengthen their case if challenged). However, note that with upcoming legal changes, every new non-compete will need a justification, even in permanent contracts. But as of now, if you’re on a temporary contract as an expat (for example, a one-year contract) and you see a non-compete, look for a paragraph explaining why it’s needed. If it’s not there or looks like boilerplate text, you likely do not have to worry about that non-compete being enforceable.
How long can a non-compete clause last in the Netherlands?
Under current law, there is no fixed maximum duration specified – the clause can last as long as the parties agree, although in practice 1 to 2 years is common. The key is that it shouldn’t be unreasonably long such that it basically prevents someone from working at all. Dutch courts have the power to shorten an overly long duration; for example, a 3-year non-compete might be curtailed by a judge who finds that unreasonable. Importantly, new legislation will formally limit non-competes to 1 year maximum by law. So once that change is in effect, any clause longer than 1 year will automatically be treated as 1 year. For now, though, you might encounter 18-month or 2-year clauses – they could be enforceable if deemed reasonable for the situation (e.g., very high-level executives might have longer restraints), but anything beyond 12 months tends to invite scrutiny. Also, note the duration can sometimes be tied to the reason for leaving; although a proposal to void non-competes if someone is fired during probation or to only allow enforcement if the employee quit voluntarily was considered, it was not adopted in the upcoming law. So, the duration is a simple calendar count from when your job ends, irrespective of why it ended.
Do I get any compensation or payment during the non-compete period when I cannot work?
Currently, there is no automatic right to compensation under Dutch law during your non-compete period. In most cases right now, if you can’t work for a competitor for, say, 6 months, you simply have to endure that “cooling off” period without compensation (unless you negotiate something). However, this situation is about to change. The new legislation in 2025 will require employers to pay at least 50% of your last earned salary for each month that the non-compete is in effect. For example, a 6-month non-compete would entitle you to 3 months’ salary as compensation, paid by the employer enforcing the clause. Some employers and employees already privately agree on garden leave or severance pay to cover a non-compete period, but it hasn’t been mandatory. If you’re under an older contract and your employer enforces a non-compete after the law changes, they will still have to pay you that 50% (the law will apply to invoking even older agreements). Keep in mind, this compensation rule is not in force yet as of the time of writing (mid-2025), so if you’re subject to a non-compete right now, you cannot automatically demand payment unless your contract provided for it. But it’s a strong point of negotiation – you can point out that the legal trend (and likely soon the requirement) is to compensate employees, which makes it fair to request some financial support if they expect you to sit out of your industry for a while.
What is the difference between a non-compete clause and a non-solicitation (relationship) clause?
A non-compete clause stops you from working for a competitor or starting a competing business, whereas a non-solicitation clause (relatiebeding) stops you from contacting or doing business with your former employer’s clients, contacts, or other specific relations. In short, non-compete = “don’t go work in this field,” non-solicit = “don’t steal our clients (or sometimes employees).” Both are aimed at protecting the employer’s business interests but in different ways. Often they appear together. For example, your contract might say for 1 year you can’t join a competitor and you can’t approach any of the company’s customers or suppliers that you dealt with. Violating a non-solicitation clause (like approaching a key client to move business to your new employer) can lead to similar penalties as a non-compete breach. Legally, both types of clauses have the same validity requirements (written, adult, etc.) and the upcoming law changes (1-year limit, justification, compensation) will apply to both. One could say a non-solicitation clause is slightly narrower – it doesn’t forbid you from taking a job, as long as you don’t target the old employer’s relationships – but if your new job is in the same field, it might be hard to avoid that. If you’re negotiating an exit, sometimes an employer might agree to drop the non-compete if you agree to a strict non-solicitation, as a compromise.
Will a non-compete still apply if my employer goes bankrupt or the company is liquidated?
Under current law, a non-compete clause can still apply even if your employer goes bankrupt and you lose your job as a result. This scenario is not uncommon in the event of a business “relaunch” – a company goes bankrupt, then a new entity (perhaps the former owners or a buyer) restarts the business and might want to prevent former employees from joining competitors. However, recognizing the potential unfairness, the government has proposed a new rule in 2025: if you’re not offered a new job when a company relaunches after liquidation, then any non-compete clause you had will automatically cease to apply at the end of your employment. In other words, if your company folded and you’re out of work, you are free to find a new job without worrying about a non-compete. This change is intended to prevent misuse of the bankruptcy process to sidestep employee protections and then hold them to a non-compete. Until that law is passed, though, be aware that technically your non-compete could be invoked even in a bankruptcy situation – although a court might be inclined to nullify it if you challenge it, given that you lost your job through no fault of your own.
What happens if I violate my non-compete clause?
If you violate (breach) your non-compete clause, several things can happen, none of them pleasant. First, if your contract included a penalty clause, you will immediately incur that penalty for the breach. For example, a common penalty is a certain euro amount per day of violation, or a lump sum like €10,000 per breach – you would legally owe that to your former employer. The employer might send you a formal notice to pay up. Second, the employer can go to court and seek an injunction to stop you from continuing to work in the forbidden job. Dutch courts can order you to leave your new job if it indeed violates a valid non-compete. The court can also impose additional fines for non-compliance with its orders. Third, the employer could sue for damages if they can prove your move caused them specific financial harm (this is less common, as the penalty usually covers it, but if no penalty clause exists, they might go this route). Moreover, your new employer might terminate your new employment if they learn you’re under a binding non-compete – sometimes hiring contracts in the Netherlands even ask you to declare that you’re not bound by any restriction. Breaching a non-compete can burn professional bridges; the Dutch business community in many sectors is small, and word can get around, possibly affecting your reputation. Therefore, it’s highly advisable to avoid breaching the clause. Use the legal avenues to get it lifted or negotiate an exception, rather than flouting it. If you have already accidentally breached (for instance, you didn’t realize a job was in the restricted category), consider seeking a settlement with your ex-employer quickly, possibly paying a negotiated amount or agreeing to leave the contested position, to avoid a protracted legal battle.
Can I negotiate with my employer to waive or cancel a non-compete clause?
Yes, absolutely. Non-compete clauses can be waived by the employer at any time. Often, the simplest way out of a non-compete is to get your employer to agree in writing to release you from it. You can negotiate this either when signing a separation/termination agreement or even after you’ve left, if an opportunity comes up. Many employers are reasonable about non-competes – if you make a good case (for example, the new job isn’t a direct competitor or you have personal circumstances), they might agree not to enforce the clause. It’s common, for instance, to negotiate a waiver in exchange for something, like you agreeing to a longer notice period or not soliciting clients (so maybe converting it to just a non-solicitation). If an employer really values the non-compete, sometimes they might ask for compensation from the new employer or from you (though with the new law’s approach, the onus is on them to pay you if they enforce it). In any event, it’s worth trying to negotiate – you might be surprised. Get any waiver in writing (an email confirming “we will not enforce the non-compete in your case” may suffice) so that you have proof later if needed. Once waived, it’s as if the clause doesn’t exist for you. If only partially waived (e.g., they shorten it to 3 months), make sure the terms are clear.
By understanding your non-compete clause and the Dutch rules surrounding it, you can better navigate your career moves in the Netherlands. For expats, it’s crucial to remember that while non-competes are enforceable, they are also regulated and can be contested. Always consider seeking legal advice if in doubt, and keep an eye on the changing laws in 2025 which are designed to give employees more freedom and clarity. Staying informed is your best tool for ensuring a non-compete clause doesn’t unfairly hold back your opportunities in the Netherlands.
Sources
Netherlands Enterprise Agency (RVO) – Business.gov.nl: “Non-compete clause” (official guidance on non-compete clauses, validity requirements, and enforcement under Dutch law).
Netherlands Enterprise Agency (RVO) – Business.gov.nl: “Rules for using a non-compete clause tightened” (summary of proposed 2024/2025 legal changes to non-compete clauses – duration limit, justification, compensation, etc.).
Government of the Netherlands – News item (July 11, 2025): “Improved protection for employees during liquidation” (announcement of bill that includes automatic expiry of non-competes for employees not re-hired after company liquidation).
De Unie (Dutch trade union) – “Facts and myths about the non-competition clause: This is what you need to know!” (May 1, 2025 – clarifications on common misconceptions: non-competes in temporary contracts, geographic scope, court challenges, penalty clauses, etc.).