Every morning, traffic flows via the A12 and A27 towards Utrecht Centraal, where thousands of employees start their day in offices around Vredenburg. For many of them, the employment contract contains a non-compete clause (concurrentiebeding) that suddenly becomes uncertain if the new act is passed. In 2026, the Modernisation of the Non-Compete Clause Bill (wetsvoorstel Modernisering Concurrentiebeding) will be in its final stages in the Tweede Kamer.
Why modernisation is necessary
Judges of the Rechtbank Midden-Nederland annul or moderate non-compete clauses (concurrentiebedingen) in approximately sixty per cent of cases. Often, a proper justification is lacking or the clause is too broad. This leads to unnecessary proceedings and uncertainty for both employer and employee.
Key changes in the bill
Mandatory written justification
As already applies to fixed-term contracts, a compelling business interest must be explicitly justified for permanent contracts. Without such justification, the clause is invalid.
Mandatory geographical and temporal limits
The bill sets clear maxima:
- Maximum 1 year from the end of the employment relationship
- Maximum 50 km geographical scope, with exceptions for certain sectors
- Permitted only for specific duties, not for an entire sector
Compensation obligation
Employers must pay compensation for as long as the clause applies. Guideline: 50% of the last earned gross monthly salary per month. If the clause is not invoked, the payment obligation lapses. This encourages employers to use only meaningful clauses.
Prohibition on non-compete clauses for low incomes
A non-compete clause (concurrentiebeding) is no longer permitted for an annual salary up to € 50,000. This affects many administrative, technical and care staff who commute daily to Utrecht via the A2.
Actions for employees in the region
Do you have a non-compete clause (concurrentiebeding) in your contract?
- Does your salary fall below € 50,000? Upon entry into force, the clause will almost certainly be invalid.
- Higher salary? Check whether a justification is present; without justification, the clause lapses immediately in new contracts.
- In the event of dismissal: ask the employer in writing whether the clause will be invoked. Without a response, the clause ceases to have effect after fourteen days.
Preparations for employers
Do not wait until the act is adopted. Have existing contracts reviewed by a specialist at Vredenburg 40 in Utrecht (030 - 8200 200). Replace vague clauses with concrete, justified versions and calculate the financial consequences of the compensation obligation. Clauses for lower-level positions can better be removed now.
Expected entry into force
The plenary debate in the Tweede Kamer is scheduled for late 2026. After possible consideration by the Eerste Kamer, entry into force is not expected before 1 January 2027. Until that date, article 7:653 BW remains in force, although courts in Utrecht are already anticipating the forthcoming changes.