Protecting corporate debt in a tight labor market, Labor Law 2025/30

1.1 Labor market tightness

The Central Bureau of Statistics has conducted research on labor market tightness. That research shows that tightness was at its peak in 2022. Employers therefore have an interest in retaining staff and preventing them from transferring to competitors. However, in court proceedings concerning the non-compete clause, the balance of interests will not turn out in favor of the employer if only the interest of staff retention is invoked. Indeed, the Supreme Court confirmed in 2022 in the Meijndert Trucking judgment that the employer's interest in keeping an employee for a certain period of time does not play a role in the balancing of interests for the non-competition clause, even if the employer needs time to find replacement personnel in a tight labor market.