Jan Dop

partner

Jan is a specialist in employment law and corporate law

jan.dop@russell.nl
+31 20 301 55 55

Can you still agree on a prohibition on ancillary activities?

Publication date 28 June 2022

Employers are no longer allowed to prohibit ancillary activities of employees without any reason. But what can you, as an employer, do to prevent your company or your employees from getting into trouble because they take on another job?

aansprakelijkheid-vrijwilligers

Currently, most ancillary activities clauses contain an absolute prohibition on ancillary activities. From 1 August 2022, a prohibition to perform ancillary activities will only be valid if it can be justified on the basis of objective grounds.

However, the legislator does not point out what an ‘objective ground’ is. The Working Conditions Directive does mention a few examples, such as:

  • Health and safety, for example ancillary activities that are severely stressful, hard or dangerous.
  • Protection of business confidentiality, for example if an employee starts working for a competitor.
  • Integrity of public services. This includes ancillary activities that make a civil servant vulnerable for blackmail.
  • Avoidance of conflicts of interests, which may arise, for example, if an employee starts working for a supplier or customer. Or if an on-call worker starts working for somebody else for fixed hours and is therefore less available for on-call work.

There might also be objective grounds if the employee works more hours than permitted under the Working Hours Act. In order to assess whether there is an objective ground, the employer must assess it in terms of its effectiveness (suitability and appropriateness) and proportionality. The interests of the employee also have to be taken into account.

As of 1 August 2022, clauses will be immediately null and void if they prohibit ancillary activities or contain grounds which are not ‘objective’. As an employer, you can however repair this nullity by giving an objective ground when you want to prohibit ancillary activities.

It is advisable to include an amended ancillary activities clause in new employment contracts, which states that ancillary activities are only prohibited subject to objective grounds. We advise you not to include any concrete objective grounds in the clause; after all, you only have to give an objective ground when you actually invoke the clause. That way, you as an employer are not restricted to the grounds stated in the clause.

Employment lawyers

Do you have any questions about the new regulation of ancillary activities of employees? Do you want us to check your ancillary activities clauses? Or do you have any other employment law issues you would like to submit to a lawyer? Please contact us:

    We process the personal data above with your permission. You can withdraw your permission at any time. For more information please see our Privacy Statement.

    Related publications

    On-call employees

    On-call contracts offer many advantages for both employers and on-call employees. However, there are also a few rules that they need to take into account. What are they?

    Read more

    Legislative proposal for greater security for flex workers

    The government wants to improve the legal position of flex workers with a new law. What will it mean for employers and flex workers if the legislative proposal is adopted? What new rules will you need to take into account?

    Read more

    Newsletter Luxury, fashion and retail

    European regulatory developments are introducing major new obligations for companies in the retail, fashion and luxury sectors. Companies must prepare their compliance processes accordingly.

    Read more

    Bill introducing a legal presumption of an employment contract based on an hourly rate passed

    A new law stipulates that self-employed persons earning less than 38 euros per hour are, in principle, deemed to be employees. What does this mean for contractors and their clients? What exceptions might there be to this legal presumption based on an hourly rate?

    Read more

    Statutory minimum hourly wage

    The statutory minimum hourly wage changes every six months. What are the new amounts as of 1 July 2026?

    Read more

    Significant changes to the HEAR Act (2026)

    The Holocaust Expropriated Art Recovery Act (HEAR Act) of 2016 has recently undergone significant amendments. This could have major implications for anyone wishing to export, trade or loan art dating from before 1946 to the United States. What do art dealers, collectors and museums need to bear in mind from now on?

    Read more