Legislation Comparison Across Countries

I'll search Moonlit for legislation and key case law on non-compete clauses across these three jurisdictions. **Comparative Analysis: Non-Compete Clauses in NL / DE / BE** **Netherlands** - **Statutory basis:** Article 7:653 of the Dutch Civil Code (Burgerlijk Wetboek) - **Formal requirements:** Must be agreed in writing with an employee aged 18+ - **Fixed-term contracts:** Since the 2015 WWZ reform, non-competes in fixed-term contracts are only valid if the employer demonstrates a "substantial business interest" (zwaarwichtig bedrijfsbelang) in writing. The Hoge Raad has held this requirement must be assessed strictly (ECLI:NL:HR:2022:1374). - **Maximum duration:** No statutory cap, but courts routinely limit excessively long clauses. The Gerechtshof Arnhem-Leeuwarden reduced a 24-month clause to 12 months in ECLI:NL:GHARL:2023:8712. - **Compensation:** No statutory requirement, but the absence of compensation is a factor in the judicial balancing test. - **Judicial moderation:** Courts can nullify or limit the clause if it unreasonably disadvantages the employee relative to the interest being protected (Article 7:653(3) BW). **Germany** - **Statutory basis:** Sections 74-75d of the German Commercial Code (Handelsgesetzbuch, HGB) - **Maximum duration:** Strictly capped at 2 years (Section 74a(1) HGB) - **Mandatory compensation (Karenzentschadigung):** The employer must pay at least 50% of the employee's last compensation for the duration of the restriction (Section 74(2) HGB). Without this commitment, the clause is void and the employee is not bound. - **Scope:** Must be limited to activities that compete with the employer's business. A clause that effectively prevents the employee from earning a living is void (BAG, judgment of 14 July 2021, 10 AZR 193/20). - **Waiver:** The employer can waive the non-compete with 12 months' notice, but remains liable for compensation for 12 months after waiver. **Belgium** - **Statutory basis:** Article 65 of the Employment Contracts Act (Arbeidsovereenkomstenwet) - **Salary threshold:** Only valid for employees earning above a salary threshold (currently approximately 39,353 EUR gross/year; above 78,706 EUR, the clause can cover broader activities) - **Maximum duration:** Strictly limited to 12 months - **Geographic scope:** Must be limited to a reasonable geographic area - **Mandatory compensation:** The employer must pay a lump-sum indemnity equal to at least 50% of gross salary for the restriction period, unless the employer waives the clause within 15 days of contract termination - **Type of termination:** The clause is void if the employer terminates without serious cause or the employee terminates for serious cause attributable to the employer | Aspect | Netherlands | Germany | Belgium | |--------|------------|---------|---------| | Max duration | No statutory max | 2 years | 12 months | | Compensation required | No (but affects enforceability) | Yes, min 50% salary | Yes, min 50% salary | | Fixed-term contracts | Restricted since 2015 | Allowed | Allowed above threshold | | Salary threshold | None | None | ~39,353 EUR | | Judicial discretion | High (can modify) | Moderate | Limited (void or valid) | **Practical recommendation:** For a cross-border employment contract covering all three countries, consider including a non-compete with a 12-month duration and 50% salary compensation. This satisfies the strictest requirements (Belgium) while being enforceable in all three jurisdictions.