Are NDAs legally binding in the Netherlands? A guide for employers [2025]

If you’re hiring employees in the Netherlands, you will likely need them to sign non-disclosure agreements (NDAs) to keep confidential information about your business protected.

Under the laws of the Netherlands, confidentiality is not an implicit obligation or assumed as a default in employment contracts. As an employer, it’s your responsibility to understand the risks and protect your company’s confidential information with an NDA.

But how are NDAs enforced in the Netherlands? Is it important to add a penalty clause to the non-disclosure agreement in case of a breach of contract? Learn more about complying with Dutch law and protecting your company and its global employees. 

(Note: our guide is for informational purposes and isn’t intended to provide legal advice).

What is an NDA?

An NDA is a contract that legally binds one or more parties to keep proprietary or confidential information from being shared with others.

NDAs are commonly given to employees upon hiring and used in workplaces to protect trade secrets, customer data, and intellectual property from competitors. Unfortunately, some NDAs have been misused to prevent employees from speaking out about harassment or fraud as whistleblowers. Whistleblowers are covered under the Dutch Whistleblowers Protection Act in the Netherlands.

Are NDAs enforceable in the Netherlands?

Yes—NDAs are enforceable in the Netherlands.

If the confidentiality agreement has a penalty clause, the employer can immediately claim upon breach of contract. Ultimately, the civil court decides if the total penalty should be awarded. They may reduce the penalty if it is considered unreasonable. Learn more about what information can be protected under the NDA below.

You can generate NDAs, offer letters, and any other documents you need, then easily send them out for e-signature—all through Rippling.

Rippling compliantly creates NDAs with every job offer

Get a demo

3 things you need to know about NDAs in the Netherlands

The Netherlands highly encourages employers to use NDAs to protect their company name and avoid leaks of a confidential nature. These are three things you need to know about Dutch NDAs:

• Penalty clauses. If you are creating an NDA in the Netherlands, it is important to include penalty clauses that will incentivize both parties to comply with the contract and discourage any breaches. Under Dutch law, a penalty clause is enforceable if the contract is breached.

• Clarity around confidentiality: The NDA must explicitly say what information is confidential, what’s public domain, and what the exclusions are. All waivers must be in writing and approved by the employer.

• The time period of the NDA. Regardless of whether the employee is terminated or leaves the company, the NDA will remain valid for the period written in the non-disclosure agreement, usually about two years.

Ensure your most sensitive information is protected

When would an employee or contractor sign an NDA?

When hiring a Dutch employee, the employer must include the NDA within the employment contract or offer letter. Alternatively, employees may be asked to sign an NDA during the onboarding process.

Frequently asked questions about NDAs in the Netherlands

Benefits of NDAs in the Netherlands

NDAs can help protect employers from unexpected leaks of confidential information and intellectual property details abroad but also protect your company name and reputation in the current competitive business landscape. Benefits include:

• Your company's confidential customer data, trade secrets, and intellectual property rights, including patents, trademarks, and copyrights, can be legally protected.

• Establish confidentiality obligations with contractors, employees, and partnerships for transparency, and everyone understands what constitutes confidential information or misuse of sensitive information.

• Prevent business plans and marketing strategies that give your business the competitive edge from being shared or misused to the employer's detriment.

• If the terms of this agreement were breached, the disclosing party has clear grounds to seek damages beyond the penalty clause. The enforceability of the NDA will help pursue legal action against the person in question.

Run your global workforce in the Netherlands with Rippling

With Rippling, you can onboard employees and contractors in the Netherlands in just 90 seconds. ​​Generate NDAs, offer letters, and any other documents you need, then easily send them out for e-signature. With Rippling you can manage HR, IT, and Finance in one unified system—and automate your global compliance work.