Is a non-compete clause allowed in a temporary contract?

The short answer

An employer may include a non-compete clause in a temporary contract, but only under strict conditions. The employer must explain in writing why this is necessary for the business - this is called an important business interest. This could be, for example, to protect trade secrets or retain customers. Without this written justification, the non-compete clause is automatically invalid. You can then go to work for a competitor without legal consequences.

What does the law say?

Article 7:653 of the Dutch Civil Code regulates non-compete clauses in employment contracts. For temporary contracts, there are extra strict rules since 2015. The employer not only needs an important business interest, but must also clearly describe this in the contract. The court closely examines whether the clause is truly necessary and not too burdensome for the employee.

What should you watch out for?

Pay close attention to what is exactly stated in your contract about competition. Check whether the employer has explained why the non-compete clause is necessary. The duration and scope of the clause are also important - a clause that is too broad or too long can be invalid. If in doubt, it's best to seek legal advice before signing the contract.

Example from practice

Lisa works for three months as a marketing assistant at a small IT company. Her temporary contract states that she cannot work for competitors for one year, but there is no explanation why this is necessary. When Lisa wanted to work for another IT company after her contract, her former employer threatened legal action. A labor law attorney told Lisa that the non-compete clause was invalid because there was no justification of an important business interest. Lisa was able to start at the new company without any problems.

What can you do?

If you are unsure about a non-compete clause, take action before problems arise.