The Dutch government has submitted a legislative proposal to the Council of State (Raad van State) that would significantly restrict the use and enforcement of non-compete clauses. Under the proposal, non-compete clauses would be limited to one year, require a defined geographical scope and specific justification, and employers would have to pay compensation if they invoke the clause. These changes are also expected to affect certain other restrictive covenants, meaning employers should reassess their use of such clauses, particularly for employees who do not hold key positions or have access to sensitive business information.
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