RESTRICTIVE COVENANTS IN EMPLOYMENT CONTRACTS

Restrictive covenants in an employment contract/staff handbook play an important role when an employee leaves.

Below are a few examples of some of the restrictive covenants that can found in employment contracts or other employment documents:

• Non-poaching: Prevents the former employee from approaching former colleagues to persuade them to move to with them.
• Non-compete: Prevents an employee from joining a business/firm that is in competition with the business where the former employee was recently employed.
• Non-solicitation: This restrictive covenant prevents a former employee of attempting to poach clients of their former employer.
• Confidential information: Plays an important role by preventing a former employee from misusing or disclosing confidential information belonging to the former employer.

Whilst restrictive covenants play a vital role in protecting the interests of a business, their scope must not be wider then an employer needs to protect its legitimate business interest. Therefore, if you are intending on leaving your current role to join a competing business, you may wish to seek legal advice to understand any potential risks when making the move. This will assist in planning ahead and hopefully avoid becoming embroiled in a legal dispute.

Whether you are an employer or former employee of a business, if you wish to discuss restrictive covenants or any are involved in a dispute, contact our legal team who will be happy to assist.