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Non-Compete Clause Needs to Be Clearer!

It needs to be clearer when a non-compete clause may be agreed upon.

Reform of the Non Compete Clause in 2023

3 minuten mr. Jeroen Kaspers Employment Law for Employers Tuesday 01 April 2025 2025

The non-compete clause has long been a source of discussion in the employment world. This clause, which restricts employees from working with competitors or starting similar businesses, is often seen as an obstacle to labor mobility and innovation. In 2023, significant changes were made to non-compete regulations in the Netherlands, aiming to protect employee rights while balancing employer interests.

Why the Non-Compete Clause Needed Reform

Non-compete clauses were often overused, limiting employees' career opportunities after leaving a job. Many clauses were broad and unnecessarily restrictive, sometimes making it difficult for individuals to find new employment in their field. The government recognized the need to better protect employees from restrictive clauses that might hinder their professional growth.

Main Changes in the 2023 Reform

The reform introduces several key changes:

  1. Stricter Justification Requirements: Employers must now clearly substantiate the necessity of a non-compete clause. They need to explain why the clause is essential to protect specific business interests, reducing the likelihood of its misuse.

  2. Maximum Duration: The duration of non-compete clauses is now capped to avoid excessively lengthy restrictions. This helps ensure that former employees can re-enter the job market sooner.

  3. Compensation Obligation: Employers are required to provide financial compensation for employees subject to a non-compete clause. This new rule ensures that the burden of the clause is shared and offers a form of security for employees.

  4. Applicability Limits: Non-compete clauses are now restricted to specific job categories and situations. This limits the ability to impose such clauses indiscriminately across all roles within a company.

Implications for Employers and Employees

For employees, the reform provides more freedom and protection against overly restrictive clauses. This increases job mobility and allows individuals to pursue new career opportunities with fewer constraints. For employers, the reform encourages a more considered use of non-compete clauses, only applying them when truly necessary.

Need Advice on a Non-Compete Clause?

At Wolderwijd Juristen, we help both employees and employers navigate the complexities of non-compete clauses. Whether you are facing a restrictive clause or need guidance on drafting one, our team is here to provide expert advice. Contact us today for more information on how the 2023 reform affects your rights and obligations.

mr. J.A. Kaspers

mr. J.A. (Jeroen) Kaspers


Dutch Lawyer and Mediator

Jeroen advices (Dutch and Englisch) clients in the areas Employment Law, Contract Law and Tenancy Law. Please follow Jeroen on LinkedIn or contact him via kaspers@wolderwijd-juristen.nl and +31 36 522 7007.

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