Restrictive Covenants

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Restrictive covenants and confidentiality provisions are usually incorporated in employment contracts and staff handbooks. They are used by employers to protect their key business information and customer/client base by restricting an employee’s activities for a period of time after their employment has terminated.

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The starting point for any such restriction is that they are potentially void as an unlawful restraint of trade, and are therefore only enforceable if they go no further that is necessary to protect legitimate business interests, for example protecting confidential information.

The most common types of restrictive covenants are:

Non-competition: Stops employees from working for a competitor or setting up in competition.
Non-solicitation: Prevents employees from poaching clients, customers and suppliers.
Non-dealing: Stops employees from doing business with clients, suppliers or existing employees even if they did not approach them first.
Non-poaching: Prevents employees from poaching colleagues
Confidentiality clauses: Prevents employees from sharing confidential information while they are employed and after they leave.

If you are subject to restrictive covenants in your employment contract that unfairly disadvantage you in the job market, or you have been contacted by your ex-employer in relation to an alleged breach of these terms, we can assist you. We provide clear, practical guidance on restrictive covenants and can advise on whether they are likely to be enforceable.