Restrictive covenants

We help you to protect your business against the threat of competition from your former employees through the use of post-termination restraints (also called restrictive covenants) that apply for a period after the end of their employment with you.

Such restraints typically prevent dealing with former customers or soliciting business from them or being involved in a competing business.  They are often combined with provisions to protect your confidential information (such as customer databases) and IP.  Nowadays social media activity is often covered also.

Our experienced, specialist employment solicitors have dealt with restrictive covenants and disputes regarding team moves over many years so we have seen both sides of the issue.  We know that careful drafting is needed for each agreement and that no two cases are alike.  If the terms are too broad, the restraint may prove to be unenforceable, if the Court decides it amounts to an unfair restraint of trade.

We also advise on contractual provisions when engaging Directors or other senior people to ensure that appropriate restrictive covenants, confidentiality clauses and descriptions of duties are included.  Where necessary we can assist with the enforcement of such clauses and in resolving disputes which arise.

Throughout, we work swiftly and incisively to obtain the most commercially advantageous results for you and your business. We can advise on:

• Drafting appropriate restrictive covenants
• Negotiating and drafting restrictions for exit or settlement agreements when employees leave your business
• Pursuing claims against former employees for breaching restrictive covenants
• Obtaining injunctions, including search orders, to identify and stop breaches or misuse of any confidential information by former employees.

Examples of our work:

Preventing a senior employee joining a competing business in the recycling sector.

Pursuing a claim for breach of restrictive covenants against a former CEO of a healthcare business, who was setting up a competing firm during his earn-out period.  This included the management of a covert surveillance operation to gather evidence of wrongdoing.

Halting former employees using confidential data to support a direct competitor in the recruitment industry.

Related Services:

Contracts, policies and handbooks  Termination and settlement agreements  

Disputes, grievances and disciplinary procedures Restructuring and redundancy  TUPE and business sales 

Tribunal representation