Also known as post-termination restrictions, restrictive covenants can be used to protect the legitimate interests of the business when an employee leaves.
The purpose of a restrictive covenant is to place limits on an ex-employees behaviour for a set period of time.
Restrictive covenants can be written into the contract of employment or can be agreed with employees by way of a separate agreement.
They usually fall into the following categories:
- non-solicit – to state that an ex-employee cannot look to solicit customers/clients
- non-deal – to state an ex-employee cannot deal with customers/clients, even if they approach the employee directly
- non-poach – to state that an ex-employee cannot poach employees
- non-compete – to state that an ex-employee cannot work for a competitor or set up a competing business.
Restrictive covenants require careful drafting to ensure the best chance of enforceability, especially if a business is planning to enforce a non-compete clause.
We can help with bespoke drafting for restrictive covenants and provide advice on enforcing them.
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For more information on restrictive covenants, please do not hesitate to contact our specialist team by filling out our online enquiry form or by calling 0333 222 0989.