Non-compete clause in a Dutch settlement agreement: when is it enforceable, when can a court invalidate it?
A vaststellingsovereenkomst often repeats the non-compete from your contract, or writes a new one. Signing is then fresh consent. You do not have to give it.
Can my employer add a non-compete?
They can put one in the draft. That is not the same as it being enforceable. A new clause in the VSO is a new restriction after the job ends; you can refuse it, narrow it, or trade it for money. A sloppy full-and-final release can still make a later claim harder — so strike or narrow the clause before you sign.
Art. 7:653 BW governs a clause that restricts you after the employment ends. The same article covers a non-solicit (“do not take our clients”). “Do not work anywhere in the sector” is the version that most often fails.
When can a Dutch court invalidate it?
- Paragraph 4: the employer cannot rely on a non-compete if the ending results from seriously culpable acts or omissions of the employer.
- Paragraph 5: the subdistrict court may void the clause in whole or in part if it unreasonably harms the employee, weighed against the employer’s interest.
A VSO is not a licence to sidestep those paragraphs. Typical bargains: the clause lapses on the end date; it is narrowed (area, duration, role); it stays but the employer pays compensation for the months it runs; only a non-solicit remains.
I already signed — can I still challenge it?
First use the 14 or 21-day cooling-off and revoke in writing if the clause is still in the signed text. After that window, a court can still test art. 7:653(4)–(5) BW, and mistake or duress remains a separate route (art. 6:228 BW, art. 3:44 BW). Have the VSO reviewed with the non-compete as the first question — including if a new job is already blocked.