Valid non-compete clause in temporary employment contract

On December 27, 2016, the Arnhem - Leeuwarden Court of Appeal ruled that a competition and relationship clause in a temporary employment contract had been validly agreed and the employee was bound by it. A former employee of Koffiebranderij Peeze wanted to join Jacobs Douwe Egberts (a direct competitor of Peeze) after his temporary employment contract expired. He was prohibited from doing so in summary proceedings and on appeal.

Date: January 05, 2017

Modified November 14, 2023

Written by: Ruud Olde

Reading time: +/- 2 minutes

On December 27, 2016, the Arnhem - Leeuwarden Court of Appeal ruled that a competition and relationship clause in a temporary employment contract had been validly agreed and the employee was bound by it. A former employee of Koffiebranderij Peeze wanted to join Jacobs Douwe Egberts (a direct competitor of Peeze) after his temporary employment contract expired. He was prohibited from doing so in summary proceedings and on appeal.

Competition clause account manager

As an account manager at Peeze, the employee was responsible for retaining and growing accounts and businesses within a specific territory. The employee engaged in relationship management and acquisition. He had obtained competitively sensitive information, so he was prohibited from joining Jacobs Douwe Egberts. The one-year non-competition clause was not deemed disproportionate, and the interest Peeze intended to serve with it, consisting of protecting business-sensitive information, was found sufficient to uphold the clause.

Motivation

This is one of the first appeal rulings in which a non-competition clause in a temporary employment contract created after the introduction of the WWZ stands. For companies that employ employees in positions that involve working with confidential customer and company data in commercial (field sales) positions, the ruling is favorable. If the employer motivates the importance of the non-competition and/or non-solicitation clause, the employee may be bound by it even after the expiration of a temporary employment contract.


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