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Non-Competition and Relationship Clause in Utrecht: What You Need to Know

Learn everything about non-competition and relationship clauses in Utrecht, including the statutory requirements, nullification by the court and local legal assistance.

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Non-Competition and Relationship Clause in Utrecht

A non-competition clause prevents an employee from working for a competing company after the end of their employment contract.

Conditions for a Non-Competition Clause

  • Must be recorded in writing
  • Only valid with an adult employee
  • For a fixed-term contract: the employer must demonstrate compelling business reasons

Non-Competition Clause in Fixed-Term Contracts

Since 2015, including a non-competition clause in a fixed-term contract is only permitted if the employer clearly states in writing which crucial business interests make this necessary.

What is a Relationship Clause?

A relationship clause restricts the employee from maintaining contact with customers or relations of the former employer after departure. This is generally less strict than a non-competition clause.

Possible Nullification by the Court

A court may declare a non-competition clause invalid or amend it if:

  • The employee is unfairly disadvantaged
  • The clause is drafted too broadly or unreasonably
  • The business interest is no longer compelling

Penalty Clause

A penalty is often linked to the breach of a non-competition clause. However, a court may reduce this penalty if it is too high.

Forfeiture in Case of Blameworthy Conduct by the Employer

If the employer acts seriously blameworthily, the non-competition clause may lapse.

Statutory basis: Article 7:653 of the Dutch Civil Code

Local Information Utrecht

Court: District Court Midden-Nederland, Vrouwe Justitiaplein 1, Utrecht

Legal Aid Office: Juridisch Loket Utrecht, Catharijnesingel 55, Utrecht