Employees
Special terms
In almost every employment contract ‘special terms’ are included. They each protect a different interest of the employer, including protecting the company’s interests, preventing unlawful competition or being able to terminate the employment contract prematurely. A non-exhaustive list of special terms is:
- Competition and relationship clause;
- Confidentiality clause;
- Ancillary work clause;
- Recruitment clause;
- Interim termination clause;
- Penalty clause;
- Study costs clause;
- Trial clause.
A good formulation and demarcation of the clause determines its legal force and effectiveness. And, of course, the possibility of enforcing the clause if necessary.
Include non-competition clause in employment contract
A non-competition clause can be included in the employee’s employment contract if, after the end of the employment contract, you want to prevent the (ex-)employee from performing work or activities that are competitive with your company. It protects your business.
The non-competition clause must be agreed upon in writing. In principle, this is only allowed in an employment contract for an indefinite period of time. It is only possible to include the non-competition clause in a fixed-term employment contract if this is necessary because of a substantial business or service interest. This reasoning must be included in the employment contract, otherwise the clause is null and void.
Your non-competition clause must also be well defined. This means that you must include the scope of the term, including (i) the duration of the term, (ii) its functional scope and (iii) its geographic scope. This delineation depends on (the nature and activities of) your company and the position of the employee.
Are you going to renew a fixed-term employment contract, or are you going to change your employee’s position and maintain the effect of the non-competition clause? Then, as a rule, this has to be agreed upon again. In such a case, please contact our employment lawyers. They can advise you on how to maintain the effect of your non-competition clause.
Employee confidentiality clause
A confidentiality clause ensures that your employee is obliged to keep certain information about your company confidential. We advise you to agree on this clause in writing, describing as concretely as possible what the confidentiality relates to. This prevents subsequent discussions about the operation of the clause. Furthermore, we advise you to attach post-contractual effect to the confidentiality clause. This ensures that the confidentiality clause also applies after the end of the employment contract.
Trial time clause
A probation period clause allows you to gain insight into an employee’s suitability for a period of 1 or 2 months. A probationary period clause is only valid if it is laid down in writing when entering into the employment contract and the clause is the same for both parties. The maximum period of the clause depends on the duration of the employment contract. Is the employment contract shorter than 6 months? Then no probationary period is allowed.
If you would like to know more about special terms and how best to formulate and use them, please contact Peter Verheijden or Lisa Kloot. They will be happy to help you.
More about employees:
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SPECIALIZED LAWYERS
These are our lawyers who specialize in this area.
Richard Ouwerling
Peter Verheijden
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Non-competition clause for commissioned workers and the prohibition on obstructing competition
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