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Employment restrictive covenants



Mon 2 October 2023 Employment restrictive covenants

Employment restrictive covenants, also known as post-termination restrictive covenants, are clauses in employment contracts that restrict an employee's activities after they leave. Including suitable restrictive covenants is a key way to protect the employer's business interests, such as confidential information, customer relationships, and trade secrets.

Employers need to carefully consider the need for restrictive covenants and only include them in employment contracts where they are necessary to protect legitimate interests and reasonable in duration and scope. We advise employers on the best and safest approach, draft appropriate covenants and also assist where employees are in breach of restrictive covenants.

There are 3 main types of employment restrictive covenants:

Will your covenants be enforceable?

Employers must have a legitimate reason to justify restrictive covenants if they get tested in a legal dispute with the employee. The covenants must also be reasonable and proportionate to the employer's legitimate interests. Courts will consider the following factors when deciding whether to enforce a restrictive covenant:

Practical checklist for employers

How we can help

If you want to protect your business against threats when employees leave, we can advise on all the options, legal and commercial and can also assist if an ex-employee is breaching restrictive covenants or the terms of their garden leave. Please do get in contact.


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