Restrictive Covenants

Employers often look to include provisions in a contract of employment restricting an employees activities when their employment has ended. These restrictions are meant to protect the employer’s business.

They fall into four main groups:

- non-compete restrictions – which prevent an employee from competing with his former employer usually within a specific geographical area for a set time following the end of his employment
-  non-solicitation/non-dealing restrictions – which prevent an employee approaching customers of the business for a set time following termination.;
- non-poaching – which prevent an employee from recruiting employees of the employer for a set time following termination;
- restrictions on the use of confidential information – which prevent an employee from using confidential information which he has acquired during his employment.

The restrictions imposed must be reasonable, be designed only to protect the employers legitimate business interests and extend no further than is reasonably necessary to protect those interests. If they go beyond this they will be  struck down as an unfair restraint of trade.

The restrictions will be automatically unenforceable if your employer wrongfully dismisses you.

If you are being asked to enter into restrictions or want to know the effect or enforceability of restrictive covenants which you have already entered into talk to one of our employment experts now.