Restrictive Covenants In Employment Contracts

Restrictive covenants are a very complex area of employment law. Our lawyers can help you negotiate restrictions, advise on their enforceability, or defend you if your former employer is taking you to court.

What can we help with?

Restrictive covenants (or post-termination restrictions) are contractual clauses that are enforceable even after you leave an employer.

These restrictions usually last anywhere between 6 and 12 months once you leave and can prevent you:

  • Working for a competitor or setting up in competition
  • Working for a previous client, contact or supplier
  • Poaching other employees
  • Poaching clients
  • Taking or using confidential business information.

We understand that you can feel trapped and unable to move on if you have restrictive covenants in your contract. However, to be enforceable a clause can’t be too restrictive, and it can’t be too vague either. Our solicitors can help you in a range of situations, including:

  • Reviewing and negotiating contracts before you start a new job
  • Assessing whether you’re breaching any restrictive covenants before setting up on your own, or leaving to go to a competitor
  • Negotiating post-termination restrictions as part of a settlement agreement and severance package
  • Negotiating a waiver of restrictive covenants if your employment is being ended due to no fault of your own (such as through redundancy)
  • Defending your position if your ex-employer is threatening legal action against you.

Frequently Asked Questions

Restrictive covenants and post-termination restrictions are put in contracts to protect businesses. By design they are there to disadvantage you if you decide to move on. We understand the detrimental impact that restrictions can have on your future, and will fight hard for your rights.

It’s increasingly the case that employers try to restrict employees after they leave a company. These restrictions usually last anywhere between 6 and 12 months and are usually set out in your employment contract or settlement agreement. Sometimes there might be a separate document which details them instead.

It’s worth noting too that if you hold shares in a company, there may also be restrictions in your shareholder agreement.

Common restrictive covenant clauses include:

  • Non-compete - This restricts you from setting up in competition or working for a competitor.
  • Non-solicitation - Prevents you from poaching clients of your previous firm.
  • Non-dealing - Similar to above but restricts you from having any contact with former clients.
  • Non-poaching - Stops you poaching other employees, teams or contractors to come work with you.
  • Non-disclosure of information - Prevents you sharing or using confidential business information.

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