Non-competition clause
A non-competition clause, non-compete clause or covenant not to compete (in Dutch concurrentiebeding) is a contractual provision under which an employee is prohibited from entering into employment for a competitor following the end of his or her employment with his or her current employer.
A non-compete clause must be made in writing in the individual employment agreement and is intended to protect the employer’s business interests. These provisions generally include one or more limitations on the kind of employment that the employee is permitted to carry out within a specific geographical area over a specific period of time. As a matter of common practice in the Netherlands, the non-compete term imposed by a non-compete clause is 12 months.