Document background
The Not To Compete Agreement is a crucial document used in Dutch employment relationships to protect an employer's legitimate business interests following an employee's departure. This agreement becomes relevant when employees have access to confidential information, trade secrets, strategic plans, or valuable customer relationships. Under Dutch law, such agreements must be in writing and signed by an adult employee, include fair compensation for the restriction period, and contain reasonable limitations in terms of duration (typically maximum 12 months) and geographical scope. The agreement must specifically detail the restricted activities and provide clear compensation terms as required by Dutch Civil Code Article 7:653. It's particularly important for senior positions, technical roles, and customer-facing positions where employees gain significant insider knowledge or customer relationships.
