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A non-compete clause in a temporary contract is only valid if it is justified in writing by a compelling business interest (Article 7:653 of the Dutch Civil Code). In practice, this often goes wrong. With these three tips, you increase the chance that the clause will hold up.
Why justification is required
In the case of a fixed-term employment contract, a non-competition clause is in principle not permitted, unless you provide written justification explaining which compelling business interest makes the clause necessary. If this justification is lacking or is too general, the court will rule that the clause is invalid. Due to the strict requirements, this often goes wrong.
Tip 1: Provide concrete and specific justification
A standard sentence is not sufficient. Describe concretely which significant business interest you are protecting — for example, specific knowledge, customer relationships, or trade secrets to which this employee has access. Make clear why a clause is necessary specifically for this position.
Tip 2: tailor it to the employee and the position
The justification must be appropriate for the specific employee and their position. What applies to one position does not automatically apply to another. A justification tailored to each employee is much stronger than a general text that is the same for everyone.
Tip 3: Keep the clause up-to-date and clearly defined
If the position changes substantially, or if you extend the contract, reassess whether the justification is still valid and adjust it if necessary. Furthermore, keep the clause clearly defined in terms of duration, area, and scope; an overly broad clause risks being moderated or annulled.
Frequently Asked Questions
Is a non-compete clause allowed in a temporary contract?
Only with written justification of a substantial business interest (Article 7:653 of the Dutch Civil Code). Without that justification, it is invalid.
Is a standard justification sufficient?
No. The justification must be concrete and tailored to the employee and their position. A general text often does not hold up.
Do I need to review the clause upon renewal?
Yes. In the event of a substantial change in function or extension, you assess whether the justification is still valid and adjust it if necessary.
A non-compete clause that holds up?
Our legal experts draft a well-reasoned non-competition clause for your employment contract. View our employment lawteam or schedule a free consultation.
