CLINT | Littler Explains! Podcast
In this podcast, Jasper Hoffstedde and Michelle Engberts discuss the upcoming changes in legislation regarding non-compete clauses. Michelle shares her expertise on this timely topic.
They begin by explaining what a non-compete clause entails. It is a provision in an employment agreement that restricts employees from engaging in similar work for another company or as an independent contractor after their employment ends. The aim is to prevent employees from transferring knowledge or skills to competitors. Michelle elaborates on how these clauses currently work under Dutch law and why these rules are also relevant for relationship clauses, which limit contact with former employer clients and partners after employment ends.
These changes include stricter requirements for the duration and geographical scope of the clause, a mandatory written justification, and even financial compensation for employees when the clause is enforced. Jasper and Michelle discuss how these changes may make such clauses less appealing for employers.
They also touch on the transitional rules. For existing clauses, the current rules will mostly remain in effect, but the new obligations regarding compensation and timely notification will also apply to these agreements.
This informative discussion encourages employers to critically assess their use of non-compete clauses now and prepare for the potential impact of this new legislation.
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Find an overview of all CLINT | Littler Explains! podcast series here.
