Document background
The Compensation For Non Compete Agreement is a crucial document used in Dutch employment relationships where an employer seeks to protect its legitimate business interests by restricting an employee's post-employment activities. This document becomes relevant when an employee has access to sensitive information, key client relationships, or valuable intellectual property that could potentially harm the business if used by competitors. Under Dutch law, non-compete clauses must be in writing, reasonable in scope, and accompanied by appropriate compensation to be enforceable. This agreement specifically addresses these requirements by detailing both the restrictions and the corresponding compensation structure, ensuring compliance with Article 7:653 of the Dutch Civil Code and related jurisprudence. It is typically implemented during employment contract negotiations or as a separate agreement during employment, particularly for roles involving access to confidential information or strategic importance to the company.
