Welcome to our quarterly employment law update. This update contains a selection of the most important employment law developments in the Netherlands, with respect to legislation and case law.
Legislation
Bill on the modernization of the non-compete clause submitted to the Council of State for advice
The Dutch government has been considering a revision of the rules governing the non-compete clause for many years. The most recent milestone was the public consultation on a draft bill in 2024. On 26 June 2026, the government took a further step and submitted a bill on this subject to the Council of State (Raad van State) for advice. This version of the bill has not been published.
From the government's announcement, we understand that:
- the maximum duration of a non-compete clause will be 12 months;
- the geographic scope of the non-compete clause will have to be specified; and
- mandatory compensation will be payable when the employer invokes the non-compete clause.
Based on the earlier draft bill that was put out for consultation, we also expect that a non-compete clause will have to include a written justification of the compelling business interests that make the clause necessary. This requirement would apply to both fixed-term and indefinite-term employment contracts.
That earlier draft also contained transitional rules (overgangsrecht). Non-compete clauses that were validly agreed before the bill enters into force will remain valid. However, the rules on invoking such...
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