Fresh from the audio press! CLINT presents its new podcast series CLINT | Littler Explains!
During the next quarter of a year, every other week one topic of Dutch Employment & Labour Law is being discussed by podcast host Jasper Hoffstedde and one of his colleagues. The listener gets easy and practical tips on how to best handle difficult or tricky situations. Today we present to you episode #1 – Non-Compete Clauses explained! – by Eric van Dam.
The non-compete clause
A non-compete clause may be agreed in writing in indefinite term employment agreements with a person of age (18+). For fixed term employment agreements additional conditions apply – these are strict, which more often than not, leads to invalidity or voidability of the clause.
What is discussed?
Do you want to ascertain that you agreed to a reasonable and – more importantly – enforceable non-compete clause, and know how the court balances both parties’ interests in case of a breach? Or does the difference between a non-compete and the business relations clause still boggle your mind as well? Today, Eric is your subject matter expert and he gives a crash course on non-competes. All of that while discussing seemingly ambiguous, yet correct case law and providing you with a free bonus of key takeaways at the end.
Where to listen?
You can find CLINT | Littler Explains! on the major podcast channels:
Show notes and additional information
Listed below you will find the show notes for this episode. For an interesting read on the matter by our today’s speaker we refer you to his blogpost
00:01:04 – kick-off; short summary of what will be discussed
00:02:34 – basic rules for enforceability of NCC’s in employment contracts
00:03:14 – 3 scopes of the NCC: material, geographical and temporal
00:04:58 – difference with business relations clause
00:06:04 – enforceability of NCC’s, drafting accurately and weighing interests
00:08:21 – when and how to include an NCC in a fixed term contract
00:09:38 – the penalty clause, reasonability is key
00:10:54 – no mandatory compensation, but the court may award it
00:11:54 – enforcing the NCC when the employee breaches the clause
00:12:56 – involve the (ex-)employee’s new employer in the proceedings
00:14:36 – how do courts assess NCC’s? – a balancing of the parties’ interests and circumstances
00:18:00 – 60 second recap; ensure validity & enforceability