Competition and/or relationship clause

Competition and/or relationship clause
A non-competition clause contains a prohibition for the employee to perform similar activities at another company or as an entrepreneur after the end of his contract.

Since 1 January 2015, it is no longer possible to include a non-competition clause in a new temporary contract. There is one exception to this rule: the demonstration of a substantial business or service interest. Can the employer prove that there are important business or service interests? Then there may be a non-competition clause in the contract. The justification for a non-competition clause must be included in the contract. The clause shall not apply without a statement of reasons.'

Work and Security Act entered into force on 1 July 2015
Many employment contracts include a competition and/or relationship clause. Since the Work and Security Act came into force on 1 July 2015, things have changed. The moment you enter into a new employment contract, even if it is an extension, this law must be observed.

Non-competition clause
A non-competition clause indicates that you may not work at a competing company of your current employer within a certain radius with a certain time frame. If you do not comply with the clause and still perform work at such a company, it is possible that there is a fine per day or part of the day worked.

What exactly is competitive is difficult to describe because it depends on the company where you now work and the company where you want to work. However, it is important that the description and the duration are carefully considered. An unreasonable clause can often be extracted from this, as a result of which the clause must be declared null and void and is therefore not valid.

Non-competition clauses are often unclear and not specifically elaborated. Unclear clauses are to the disadvantage of the employer, as a result of which the clause can be declared null and void.

Relationship clause
A relationship clause means that an employee may not undertake business activities with the employer's customers or other relations for a certain period of time after employment. There are circumstances in which the employee can lodge an objection against the included relationship clause. If an employee has a relationship clause, he or she can decide to initiate proceedings against the employer. He/She then demands that the relationship clause be annulled. Whether this procedure ends up before the subdistrict court depends on the circumstances and the goodwill of the employer. 

The role of AGA Lawyers
A lawyer of AGA Lawyers offers assistance in most cases within employment law. In the event of a conflict regarding employment law, an expert lawyer is at your side. Together with you, the lawyer determines the right approach and ensures the best possible solution and result. Advising, mediating, litigating, negotiating or drafting legal documents, AGA lawyers arrange it for you.

Contact AGA Lawyers
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