Modernisation Of The Non-compete Clause: Legislative Proposal Introduces Far-reaching Changes

Non-compete clauses have been the subject of debate for quite some time. According to the legislator, the current framework hampers labour mobility, as non-compete clauses are increasingly included as a standard provision in employment contracts, even where there is no clear necessity to do so. For that reason, the legislative proposal substantially revises Article 7:653 of the Dutch Civil Code.

On 29 June 2026, the amended legislative proposal on the modernisation of the non-compete clause was submitted to the Council of State for advice. Although the proposal has not yet been finalised, it already provides a clear indication of the direction envisaged by the legislator. Notably, several far-reaching elements of earlier proposals have been removed, while other measures have been refined and further developed.