Ancillary activites and non-compete

Protection of your business interests

As an employer, you want to prevent (former) employees with sensitive information, customer contacts, or specialized knowledge from moving to competitors. Including a non-compete and/or relationship clause in the employment contract is a commonly used legal measure to address this. However, the validity and enforcement of such a clause requires careful consideration.

What is a non-compete or relationship clause?

A non-compete clause prohibits an employee from performing competitive work for your business within a certain period and region after the termination of the employment contract.

A relationship clause focuses on prohibiting former employees from maintaining contact with customers, suppliers, or relationships of your organization after leaving. Both forms limit the (former) employee's freedom in the labor market and must therefore meet legal requirements.

When is a clause valid?

• For indefinite employment contracts, a written agreement with an adult employee suffices.
• For fixed-term employment contracts, strict requirements apply. The clause must then be accompanied by a written, concrete justification that shows it is necessary due to compelling business interests. This justification must be specific and tailored to the position and the respective employee; general wording is insufficient.

Anti-poaching clauses (prohibition on recruiting colleagues) can also fall under the same rules as a non-compete or relationship clause.

Risks and procedures

Legal proceedings regarding these clauses are frequent, not only about whether there has been a violation but also regarding their legal validity. An error in wording, incorrect application, or lack of justification can lead to the clause being declared invalid.

We advise employers on:

• Drafting legally sound non-compete and relationship clauses;
• Risk analysis upon termination of an employment relationship;
• Legal procedures regarding violations of the clause or discussions about enforcement.

Ensure a strong legal basis

Do you want to effectively protect your business interests and avoid disputes with (former) employees? Have your non-compete and relationship clauses legally reviewed or drafted.

Contact our labor law specialists for practical and strategic advice.