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Use case · HR & employment

Will the non-compete hold: a memo on two clauses under two laws

Upload a departing director’s contracts, test each non-compete against Dutch and German law and the case law, and advise the client before it sends a warning.

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Lawyer in a camel trench coat holding two printed employment contracts on a station platform bench

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azta
Fixed-term Dutch employment contract with a 12-month non-compete and no stated business interest; separate German contract with a two-year non-compete and no compensation clause. Employee joins a competitor in Hamburg.
NL · DE · EU
Researching

Reading your files

Searching wetten.overheid.nl

Searching Rechtspraak.nl

Searching Gesetze im Internet

Searching Rechtsprechung im Internet

Netherlands: writing, and a reason in fixed terms. A Dutch non-compete must be agreed in writing with an adult employee. In a fixed-term contract it is void unless the clause itself states the compelling business interests that require it.
Netherlands: the court can moderate. Even a valid clause can be set aside wholly or partly by a Dutch court if the employee is unfairly disadvantaged compared with the employer’s interest. Courts weigh duration, scope and the new role.
Germany: compensation is a condition. A post-contractual non-compete for an employee must be in writing, may last at most two years and must promise compensation of at least half the last contractual remuneration for each year. Without a compensation promise, the clause does not bind the employee.
Apply the right law to each contract. Under the Rome I Regulation, an employee keeps the protection of the mandatory rules of the country where she habitually works, whatever law the contract chooses. The memo should settle that per contract first.
Draft the enforceability memo
non-compete-enforceability-memo.docx
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Non-compete clauses of the departing sales director

Dutch contract. The contract is fixed-term and the non-compete does not state the compelling business interests behind it. On the decisions reviewed, the clause is very likely void. A warning letter based on it would carry little weight.

German contract. The clause contains no promise of compensation. On the decisions reviewed, the employee is not bound by it. Whether offering compensation now could still bind her is doubtful and is addressed in Section 3.

Recommendation. Rather than a non-compete warning, we suggest a letter reminding her of her confidentiality obligations and of the client’s rights in its customer data, which do not depend on either clause.

Sources · wetten.overheid.nl · Rechtspraak.nl · Gesetze im Internet · Rechtsprechung im Internet
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A replay of this page’s example. In azta every line of the answer carries a citation that opens the provision itself.

The situation

A departing employee’s contracts with non-compete clauses, uploaded

A sales director is leaving a Rotterdam maker of warehouse software for a competitor in Hamburg. She has two contracts: a fixed-term contract with the Dutch company containing a 12-month non-compete, and one with the German subsidiary for the DACH region with a two-year non-compete that says nothing about compensation. The client wants to know whether either clause holds before it sends a warning letter.

The clauses are a page long. The answer is in the case law: how Dutch courts treat non-competes in fixed-term contracts, and what German courts do with a clause that promises no compensation. The hours go on reading enough decisions to give a firm view, then writing it up.

What the research has to settle

The rules behind the answer

Netherlands: writing, and a reason in fixed terms
A Dutch non-compete must be agreed in writing with an adult employee. In a fixed-term contract it is void unless the clause itself states the compelling business interests that require it.
Netherlands: the court can moderate
Even a valid clause can be set aside wholly or partly by a Dutch court if the employee is unfairly disadvantaged compared with the employer’s interest. Courts weigh duration, scope and the new role.
Germany: compensation is a condition
A post-contractual non-compete for an employee must be in writing, may last at most two years and must promise compensation of at least half the last contractual remuneration for each year. Without a compensation promise, the clause does not bind the employee.
Apply the right law to each contract
Under the Rome I Regulation, an employee keeps the protection of the mandatory rules of the country where she habitually works, whatever law the contract chooses. The memo should settle that per contract first.

How it runs in azta

From the question to the document

The question, as you would type it

Fixed-term Dutch employment contract with a 12-month non-compete and no stated business interest; separate German contract with a two-year non-compete and no compensation clause. Employee joins a competitor in Hamburg. Is either clause enforceable, and what are the leading decisions?
  1. You start with

    A departing employee’s contracts with non-compete clauses, uploaded

  2. 01

    Upload both contracts

    Add the Dutch and German contracts and any side letters. azta reads them and refers back to the clause it relied on.

    File upload· Pro
  3. 02

    Find the decisions

    Ask how Dutch courts treat non-competes in fixed-term contracts without a stated reason, and how German courts treat a clause with no compensation. azta links each decision to its full text.

    Case-law search
  4. 03

    Write the memo

    Ask for a memo per clause: governing law, validity, likely outcome and what the client can do. Edit it in Canvas.

    Canvas · Ask azta· Pro
  5. 04

    Export for the client

    Export to Word and add your recommendation on the warning letter.

    Word export· Pro
  6. You send

    An enforceability memo on each clause, with the case law

What you get

An enforceability memo on each clause, with the case law

Enforceability memo · draft

Non-compete clauses of the departing sales director

Dutch contract. The contract is fixed-term and the non-compete does not state the compelling business interests behind it. On the decisions reviewed, the clause is very likely void. A warning letter based on it would carry little weight.

German contract. The clause contains no promise of compensation. On the decisions reviewed, the employee is not bound by it. Whether offering compensation now could still bind her is doubtful and is addressed in Section 3.

Recommendation. Rather than a non-compete warning, we suggest a letter reminding her of her confidentiality obligations and of the client’s rights in its customer data, which do not depend on either clause.

Illustrative excerpt. A real draft is built from your facts and cites the provisions it relies on.

Outcomes on your numbers

What azta is worth on this task

Pro pays for itself after

8 minutes a month

At €210 an hour, that is all the time Pro (€27 a month) has to take off your desk to cover its price.

Example figures. Replace them with your own.

10%50%
Hours back a year
49
Capacity at your rate
€10,206
More non-compete memos a quarter
2.2
Return on Pro
31.5×
Hours a year on this task
Today198 h
Your scenario149 h
  • Research
  • Drafting
  • Your review

A scenario you set, not a promise. The hours that come back go to another client, or deeper into this one.

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Book a demo

Sources azta searches here

  • wetten.overheid.nl
  • Rechtspraak.nl
  • Gesetze im Internet
  • Rechtsprechung im Internet
See the full source register

What stays with you

  • The facts of the new role and what she actually knows.
  • The strategy toward the employee and her new employer.
  • The advice you sign.

Frequently asked questions

Does azta search Dutch and German labour court decisions?
Yes, from the published case-law collections in its source register. Coverage varies by country; the register lists each collection.
Can it draft the warning letter too?
Yes. Ask for the letter in Canvas once you have decided the position, and edit it before it goes out.
Does it decide whether the clause is enforceable?
No. It sets out the rules and the decisions, cited. The view you give the client is yours.

Book a demo

See the enforceability memo built from your own case.

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  1. 1

    Bring a real question

    One from this week, with the facts you would give a colleague.

  2. 2

    We run it in azta with you

    You watch the research and open the citations against the provision.

  3. 3

    You see the draft it produces

    Then we plan a trial with your team, if it fits your work.

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