The Non-Compete Form is a crucial document in Dutch employment law, designed to protect an employer's legitimate business interests while complying with strict statutory requirements. It is typically used when hiring employees who will have access to sensitive information, key client relationships, or trade secrets. The agreement must be carefully drafted to ensure enforceability under Dutch law, which requires non-compete clauses to be reasonable in duration, geographic scope, and restricted activities. The document should specify clear terms of restriction, compensation, and enforcement mechanisms while adhering to Article 7:653 of the Dutch Civil Code. It's particularly important for knowledge-intensive industries and senior positions where post-employment competition could significantly impact the business.
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1. Parties: Identification of the employer and employee, including full legal names and addresses
2. Background: Context of the agreement, employment relationship, and legitimate business interests being protected
3. Definitions: Key terms including 'Competitive Activities', 'Restricted Period', 'Restricted Territory', 'Confidential Information', and 'Competitors'
4. Scope of Non-Compete: Detailed description of prohibited activities and competition restrictions
5. Duration: Time period for which the non-compete obligations will apply (must be reasonable under Dutch law)
6. Geographic Scope: Clear definition of the territorial boundaries where restrictions apply
7. Consideration: Compensation provided to the employee in exchange for the non-compete obligations
8. Exceptions: Specific circumstances or activities excluded from the restrictions
9. Enforcement: Remedies and procedures in case of breach, including penalty clauses (boetebeding)
10. Severability: Provision ensuring remainder of agreement remains valid if any part is found unenforceable
11. Governing Law: Specification of Dutch law as governing law and jurisdiction
12. Signatures: Execution section including date and signatures of all parties
1. Post-Employment Notification: Requirement for employee to inform new employers of restrictions - include when there's high risk of immediate competition
2. International Scope: Additional provisions for international operations - include when company operates across multiple jurisdictions
3. Industry-Specific Restrictions: Detailed provisions for specific industry requirements - include for regulated industries or specialized sectors
4. Garden Leave: Provisions for paid leave during notice period - include for senior positions or when immediate competition risk is high
5. Client Non-Solicitation: Specific provisions regarding client relationships - include when client relationships are crucial to business
6. Employee Non-Solicitation: Restrictions on recruiting former colleagues - include when protecting team stability is important
7. Compliance with Works Council: Reference to works council approval if applicable - include when company has a works council
1. Schedule 1 - Restricted Activities: Detailed list of specific activities, products, or services covered by the non-compete
2. Schedule 2 - Restricted Territory: Maps or detailed description of geographic areas covered by restrictions
3. Schedule 3 - Competitor List: List of specific competitors if restriction is limited to certain companies
4. Schedule 4 - Compensation Details: Breakdown of any specific compensation related to the non-compete obligations
5. Appendix A - Employee's Position and Access: Details of employee's role and access to confidential information justifying restrictions
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