Non Competition Form Template for Netherlands

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Key Requirements PROMPT example:

Non Competition Form

"I need a Non Competition Form for a senior software developer in Amsterdam who will have access to our proprietary AI algorithms, with a two-year restriction period starting March 2025 and covering the Benelux region."

Document background
The Non Competition Form is a crucial document in Dutch employment law, designed to protect an employer's legitimate business interests while ensuring fair treatment of employees. It becomes relevant when companies need to safeguard their competitive advantages, trade secrets, customer relationships, and specialized knowledge. The agreement must comply with Dutch Civil Code Article 7:653, which requires written form, adult employee status, and reasonable compensation. Typically used for key employees with access to sensitive information or valuable customer relationships, the document specifies restricted activities, geographical limitations, and duration of non-compete obligations. Recent Dutch legislative changes and court decisions have made it essential to include clear justification of business interests and appropriate compensation structures. The agreement should be carefully tailored to balance business protection with employee rights to work.
Suggested Sections

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 competing activities, confidential information, and territory

4. Scope of Non-Competition: Detailed description of prohibited competitive activities and specific business areas covered

5. Duration and Territory: Time period and geographical area of the restriction, ensuring compliance with Dutch reasonable limitations

6. Compensation: Details of financial compensation provided for the non-compete restriction as required by Dutch law

7. Employee Acknowledgments: Employee's confirmation of understanding and acceptance of restrictions

8. Enforcement and Remedies: Consequences of breach and available legal remedies

9. Severability: Provision ensuring rest of agreement remains valid if any part is found unenforceable

10. Governing Law: Specification of Dutch law as governing law and jurisdiction

Optional Sections

1. Garden Leave: Optional provisions for paid leave period during which employee remains employed but does not work, used when immediate competition risk exists

2. Customer Non-Solicitation: Additional restrictions on approaching customers, included when customer relationships are critical

3. Employee Non-Solicitation: Restrictions on soliciting other employees, included when protecting team stability is important

4. Training Repayment: Provisions regarding repayment of specialized training costs, included when significant training investment exists

5. Industry-Specific Restrictions: Additional provisions specific to certain industries or professions, included based on sector requirements

Suggested Schedules

1. Schedule 1 - Restricted Territory: Detailed map or list of geographical areas covered by the restriction

2. Schedule 2 - Compensation Calculation: Detailed breakdown of non-compete compensation calculation method

3. Schedule 3 - Competitor List: List of specific competitors or competing businesses covered by the restriction

4. Appendix A - Business Interests Justification: Detailed explanation of legitimate business interests being protected, as required by Dutch law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Pharmaceuticals

Manufacturing

Research and Development

Consulting

Software Development

Telecommunications

Biotechnology

Engineering

Sales and Marketing

Media and Entertainment

Relevant Teams

Legal

Human Resources

Executive Leadership

Sales

Research & Development

Product Development

Customer Relations

Business Development

Information Technology

Marketing

Operations

Finance

Strategy

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Sales Director

Senior Software Engineer

Product Manager

Business Development Manager

Research Scientist

Financial Controller

Technical Architect

Account Manager

Marketing Director

Regional Manager

Senior Consultant

Head of Research

Clinical Director

Investment Manager

Operations Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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