Beware, especially with the labour market strained and good staff scarce by the end of 2021. Skilled employees are sometimes lured away by recruiters, approached directly by competitors or employees working there, or informed of other opportunities with higher salaries or better working conditions via social media.
A legally valid non-compete and/or non-solicitation clause can limit an employee's ability to be employed by and competitor or relation of the former employer.
What should employers and employees pay attention to?
First of all, section 7:653 of the Civil Code is important here. This article reads as follows:
Employers should ensure, among other things, that:
Employees should further ensure, among other things, that:
The sneaky thing about a non-competition and/or non-solicitation clause is that breaches are often subject to hefty fines and can cause enormous stress when an employee is sued by the former employer. The adage: “think before you start” really applies here. A short conversation with one of our lawyers can often shed a lot of light or, at the very least, lead to the conclusion that further investigation is necessary.
A short conversation with one of our lawyers can often shed a lot of light or, at the very least, lead to the conclusion that further investigation is necessary.
This short article was drafted by mr Jan Willem IJsseldijk. It contains only a few points of interest in a non-competition and/or relation clause and it has not been the intention to cover all aspects in full. This is virtually impossible because every case is slightly different. Our advice is therefore: if you are faced with an issue involving the above, contact us in good time.