Restrictive covenants

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Restrictive covenants

A contractual term restricting an employee's activities after termination is void for being in restraint of trade and contrary to public policy unless the employer can show that it has a legitimate proprietary interest that it is appropriate to protect and the protection sought is no more than is reasonable having regard to the interests of the parties and the public interest.

An employer cannot impose a covenant merely to stop someone competing, but it can seek to stop that person using or damaging something which legitimately belongs to it. This type of restriction is to be distinguished from the duty of confidentiality that an employee owes to an employer. There can be no guarantee that any restrictive covenant will be enforceable and there are no general guidelines which can be specified as to what would be considered reasonable, for example in terms of time or geography. Each clause must be considered in each case by reference to the business needs of the employer imposing the restriction. The drafting of such clauses is important as poorly drafted covenants are unlikely to be enforceable.

We can provide the relevant clauses to ensure that your business is protected.

If you require information or a consultation call us now on 0800 046 3065.

 

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