A legislative proposal is currently ready for the modernization of the non-compete clause.
It comes down to this: employees will only benefit (concluding a non-compete clause is made more difficult, and employees are paid if their employer really wants to hold them to the clause), while employers will only gain obligations (such as, for example, having to pay a maximum of six months’ salary (!), with a very tight deadline, a limitation to a maximum of one year alongside a mandatory regional restriction). There has also not been sufficient thought given to the differences with a non-solicitation clause. Under the legislative proposal, the employer will in future have to pay compensation to their (former) employee to stay away from their customers. That seems a bit like the world turned upside down.
We understand that something needs to change about the standard use of a non-compete clause purely to retain employees. But the legislative proposal cuts too many corners on a number of points that are important for entrepreneurs.
Nowadays, as a citizen or business, you are allowed to respond to legislative proposals and give your opinion. This allows the relevant Minister to read what citizens, businesses or bodies think of the plans for new laws. This is called internet consultation. If it works well, the Minister picks up the good signals from it and processes them as adjustments. More say, in other words.
The Legal Company is a member of the Nevoa, the professional association for corporate lawyers. Together with two other lawyers from the Nevoa, mr. Dietrich Loos contributed, on behalf of The Legal Company and our clients, to a response that was posted to the internet consultation. You can find the link here https://www.internetconsultatie.nl/moderniseringvanhetconcurrentiebeding/reactie/105e1602-8748-4373-893a-d7ce4a8ab7ea
The consultation closed on 15 April. We are waiting to see what happens next, and we will keep you informed of developments.
Do you have questions about the legislative proposal, the non-compete clause, the possible consequences for your organization, or other legal questions? Feel free to contact us via info@thelegalcompany.nl or call 020 345 0142. We are happy to help you further.
Nothing is as changeable as legislation and regulation. Please note that our blogs may no longer align with current legislation and regulations and may therefore be outdated. If you have questions or a problem relating to this blog, or if you require legal assistance, please contact us.