Restrictive Covenants are terms in an employee contract that provide a certain level of protection for employers.  Anyone who leaves a business knowing the strategies, technologies and client list, will be very appealing to competitors in the same industry.

Typically, a restrictive covenant is a contractual clause that prohibits an employee from working with competing companies for a period of time after termination of employment.

Types of restrictive covenants

Enforcing restrictive covenants

Employment terms and conditions are not a ‘one size fits all’ document, especially when it comes to restrictive covenants.  For them to be enforceable, the clause must be justified and suitably narrow.  Employers must be able to demonstrate that they’re necessary for the protection of your business.

Certain factors to be mindful of

 

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