Restrictive Covenants

Restrictive covenants in an employment context are typically clauses in a contract which seek to prohibit an employee from certain activities when the employment contract ends.

Restrictive covenants can be essential to protecting your business from departing employees.

A restrictive covenant is deemed void on the grounds of restraint of trade and public policy, unless the employer can show that the restrict covenant (1) is designed to protect the companies’ legitimate business interests and (2) it extends no further than is reasonably necessary to protect that legitimate business interest.

It is therefore important to have particular regard to the relevant business and employee when drafting the restrictive covenants as opposed to offering the same clauses every time which is often the case.

Legal action in this area can be notoriously difficult and time consuming. If there is a suspected breach of a restrictive it is vital to act quickly and ensure the evidence gathering phase is effective.

We can help putting effective restrictive covenants in place and with bringing a claim against a former employee.

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