7. Restrictive Covenants

Protecting the Business

Restrictive Covenants are clauses incorporated into the contract of employment that 'restricts' employees from doing something either during or after employment.

The most recognised restrictive covenants are those that place restrictions on employees after employment has ended. These generally seek to prevent ex-employees from 'soliciting (poaching) or contacting clients', but can also include confidentiality, trade secrets and protecting the stability of the workforce. It is wholly understandable why a company would wish to protect its business. However, restrictive covenants are not easy to enforce, and they need to balance the interests of the company with the individual's right to work and use their skill. They therefore need careful consideration and drafting. Case law has provided a great deal of guidance in...

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Restricting what an employee can do during and after employment

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