Relationship Clause in Employment Law for Westland

Relationship Clause

In Westland, home to many horticulture companies and exporters, a relationship clause often appears in employment contracts. This provision prohibits you from doing business with your former employer's clients after your employment ends. It protects their relationships but must meet strict requirements to be enforceable. This article explains how it works, when it is valid, and what it means for employees in Westland.

What does a relationship clause entail?

A relationship clause specifically restricts you from contacting clients you built relationships with during your time at a Westland company. Unlike a non-compete clause, which excludes entire industries, it targets only those specific relationships. This prevents your employer from losing established contacts when you move to a new job, for example with a competitor in greenhouse horticulture.

Example: As an account manager at a greenhouse supplier in Naaldwijk, you maintain ties with three major growers. A relationship clause could then prohibit you for one year from approaching those growers for yourself or a new employer. It must be in writing in your contract, with precise details on the relationships, duration, and region, such as Westland and surrounding areas.

Legal rules for relationship clauses

There is no specific law for relationship clauses, unlike non-compete clauses. Since 2020, Article 7:653(1) of the Dutch Civil Code imposes strict requirements on non-compete clauses: in writing, detailed, and with compensation (at least half the transition payment). In 2022, the Supreme Court ruled (ECLI:NL:HR:2022:390) that relationship clauses fall outside these rules, as they are specific and do not impose a total ban. However, it must be reasonable and fair (Article 6:248 of the Dutch Civil Code) and not disproportionately hinder your freedom to choose employment.

Non-Compete Clause versus Relationship Clause

Here is an overview of the key differences:

More information on the non-compete clause can be found in our other article.

Requirements for a valid relationship clause

To hold up before the District Court of Westland, a relationship clause must meet:

• Written inclusion in the contract.
• Clear description of the relationships involved (e.g., 'clients in Westland you worked with').
• Limited duration: typically 6-12 months; longer only with good reason.
• Geographical limitation: limited to Westland or where the clients are located.
• Legitimate purpose: employer must prove necessity, such as with sensitive grower information.

Overly general wording like 'all business clients' is usually declared invalid by the sub-district judge in Westland.

Practical examples from Westland

Example 1: Jan works at a staffing agency in 's-Gravenzande for horticulture personnel and builds a relationship with a major grower. After leaving, he approaches that grower for his own agency. The District Court of Westland upholds the clause (12 months): Jan pays damages.

Example 2: Marie sells at a real estate agency in Monster. Her clause covers 'clients from the last year.' An ex-client calls her; the judge voids the clause due to its overly broad scope and her passive role.

Example 3: At a Westland agritech IT company, a 2-year clause applies to a junior employee: invalid per the District Court of Westland, too long and disproportionate.

Your rights and obligations under a relationship clause

Rights as an employee in Westland

1. Review and negotiate the clause upon joining.
2. Have it declared invalid via the sub-district judge at the District Court of Westland or Westland Legal Aid Office.
3. No penalty for passive contact, unless explicitly stated.

Obligations as an employee

• Avoid violations to prevent proceedings at the District Court of Westland.
• Discreetly check for overlap with your new job.

Employer in Westland

Enforcement via penalty or claim is possible if proven. In disputes: expect a case at the local District Court.

Frequently Asked Questions