Imagine an international employee cycling daily along the busy Parnassusweg in Amsterdam Zuid, wondering whether their broad non-compete clause (concurrentiebeding) restricts them from moving to another tech company. In 2026 the modernisation of the non-compete clause (concurrentiebeding) is set to be introduced, directly affecting the multicultural and internationally oriented labour market in the capital.
The need for reform
The current Article 7:653 BW continues to generate numerous proceedings before the Rechtbank Amsterdam, in which employees succeed in more than half of the cases. Often a concrete justification is lacking or the clause is too vague for the local situation of high rents and international career switches.
Key amendments in the bill
Mandatory written justification
For permanent contracts the compelling business interest must be explicitly explained. Without such justification the clause lapses automatically.
Mandatory geographical and temporal limits
The proposal introduces clear maxima:
- Maximum 1 year after termination of the employment relationship
- Maximum 50 km geographical scope, with exceptions for certain sectors
- Limited to specific duties rather than an entire sector
Compensation obligation
Employers must pay compensation of approximately 50 per cent of the employee’s last-earned gross monthly salary for as long as the clause remains in force. If the clause is not invoked, the obligation lapses. This discourages excessive use.
Prohibition on non-compete clauses for low earners
Employees earning up to € 50,000 per year are subject to a prohibition. This affects many care, technical and administrative roles that are common in Amsterdam.
Preparations for Amsterdam employers
Do not wait until the Act enters into force. Review existing contracts, make clauses specific and justified, and calculate potential compensation costs. Offices in the Zuidas and along the Parnassusweg can already contact the Arslan office on 070 - 4500 300 for an audit.
Rights for employees in the capital
Do you have a non-compete clause (concurrentiebeding) in your contract? If your salary is below € 50,000 it will probably become invalid upon entry into force. For higher incomes: check the justification. Upon dismissal, request in writing whether the employer intends to invoke the clause; in the absence of a response the clause lapses after fourteen days.
Timeline and expected entry into force
The Tweede Kamer will debate the bill in plenary session at the end of 2026. After the Eerste Kamer, entry into force is unlikely before 1 January 2027. Until that date the current law remains applicable, although the Rechtbank Amsterdam is already taking the new direction into account.