Restrictive Covenants in Employment

Post-termination restrictions are provisions that limit certain activities of an employee after their employment has ended. These restrictions are designed to protect the legitimate interests of the employer, such as confidential information/ trade secrets, client relationships, commercial connections and stability of workforce. We work with clients to identify what interests can be protected. 

Common post-termination restrictions include non-compete clauses, non-solicitation clauses, non-dealing clauses and confidentiality clauses. Non-compete clauses restrict employees from working for competitors or starting a competing business. Non-solicitation clauses limit the employee’s ability to poach clients or recruit former colleagues. Non-dealing clauses prevent the employee from dealing with clients even when the employee hasn’t solicited that business, whilst confidentiality clauses prevent the disclosure of confidential information and trade secrets. The restrictions required, including the duration of the restrictions, will vary depending on the business interest which are being protected. We assist our clients in identifying what post-termination restrictions they need to include in their contracts of employment to best protect their legitimate interests. 

Yes – so long as they go no further than is reasonably necessary to protect a legitimate business interest. This means that restrictions must be reasonable in their drafting, scope and duration . We regularly review and draft post-termination restrictions to maximise their enforceability 

If an employer believes that an employee is acting in reach of their post-termination restrictions they should act quickly in order to protect their interests and limit any damage.

Restrictions can be enforced in the civil courts and potential remedies include damages for any losses as well as injunctive relief to prevent the employee acting in breach.

Not all disputes will need to be dealt with in court and it can often be resolved through other means such as pre-action letters. Once a breach or a potential breach has been identified, we work quickly to establish and implement the most appropriate course of action.

Whilst post-termination restrictions are an important tool, they are not the only protections available to employers. Having a contract of employment that deals with garden leave, notice, intellectual property and return of property can also provide increase levels of reassurance. We collaborate with our clients to produce an effective post-termination strategy.  

Post-termination restrictions are provisions in a contract of employment which are continuing obligations that you continue to owe to a former employer notwithstanding the termination of your employment and limit your activities after leaving a job. These could include non-compete clauses, non-solicitation clauses, non-dealing clauses and confidentiality clauses. Understanding these restrictions is crucial to navigating your career transitions. We work with employees to identify the scope of any post-termination restrictions and how they will impact future activities.

Yes, common restrictions include non-compete clauses, which limit who you can work for or what work you can do; non-solicitation clauses, which restrict your ability to approach former clients or colleagues; non-dealing clauses which prevent you from dealing with former clients even when there has been no solicitation of those clients and confidentiality clauses, which prevent the disclosure of confidential information/trade secrets. Each can have different implications for your future employment opportunities. our team of experts can identify the restrictions and advise on how they will apply to you. 

The general position is that post termination restrictions will be enforceable so long as the employer can show that the restriction goes no further than is reasonably necessary to protect a legitimate business interest. This means that restrictions must be reasonable in their drafting, scope and duration. Our employment solicitors can analyse your restrictions and advise on whether those restrictions are enforceable.  

If your former employer believes that you are acting breach of your restrictions they are likely to act quickly in order to protect their interests and limit any damage.

Dependant on the circumstances restrictions can be enforced in the civil courts and potential remedies include damages for any losses as well as injunctive relief to prevent the employee acting in breach.

Before commencing action, you may receive a letter before action from a solicitor. If you receive such correspondence or had proceedings commenced against you, you should take professional advice as a first step. Our solicitors can review the restrictions, any allegations, and the situation to advise on the most appropriate steps to take in defending your position.

Yes, i you can look to negotiate on restrictions before entering into a new contract or taking on a new role. Our solicitors would be able review any proposed post-termination restrictions in order to advise you on the restrictions and any key grounds for negotiation.