Trade Secrets Now Expressly Protected by Law

New Legislation Enacted

Authors: Eric van Dam, Partner & Jasper Hoffstedde, Legal Assistant — Littler Netherlands

On October 22, 2018, the Trade Secrets Protection Act (the Act) entered into force. The new legislation lays down the rules on implementing Directive 2016/943/ EU of June 8, 2016, of the European Parliament and the Council on the protection of undisclosed know-how and business information (trade secrets) and against the unlawful acquisition, use and disclosure thereof. The Act further specifies what is meant by a trade secret, against which forms of infringement (unlawful acquisition, use or disclosure) action can be taken and which measures, procedures and remedies can be used.

Parental Leave for Partners Extended

New Legislation Enacted

Authors: Wouter Engelsman, Partner & Jasper Hoffstedde, Legal Assistant — Littler Netherlands

The new Act on Introduction of Extra Parental Leave, which extends parental leave for partners, takes effect January 1, 2019 in two steps. As of January 1, the parental leave of the mother’s partner is extended from two days directly after child birth to once the number of working hours per week, to be taken within four weeks after the child is born. The second change, scheduled for July 1, 2020, allows partners to take additional birth leave up to five weeks, to be taken within six months after the birth of the child, with the remuneration capped at 70% of the maximum daily wage.

Transition Payment Is Fixed and Thus Not Susceptible to Reasonableness and Fairness

Precedential Decision by Judiciary or Regulatory Agency

Authors: Eric van Dam, Partner & Coco de Munk, Associate — Littler Netherlands

On October 5, 2018, the Supreme Court of the Netherlands ruled that employees who are dismissed shortly before reaching state retirement age have a right to the full transition payment. Here, the fact that the employee was receiving a benefit payment for fully disabled employees was not a reason for the employer to award a lower transition payment. The Court noted that the legislature did consider the fact that an employee dismissed shortly before state retirement age has a right to a transition payment that is more than the salary that would have been awarded if he or she had remained in employment until reaching state retirement age.

The Newly Created Netherlands Commercial Court

Important Action by Regulatory Agency

Authors: Dennis Veldhuizen, Partner & Jasper Hoffstedde, Legal Assistant — Littler Netherlands

The Netherlands Commercial Court will launch as of January 1, 2019. The NCC, constituted from a pool of judges with extensive experience in complex international disputes, will be based in Amsterdam and use Dutch procedure. Proceedings and judgments will be in English. The NCC Rules outline the main procedure and practice rules and reflect global best practices. The eNCC will be the web portal with secure access through the NCC site, allowing Dutch counsel to initiate an action, check the status and scheduled next steps, and submit and download documents. Parties need to expressly agree upon the NCC’s jurisdiction as a forum of choice.