Our employment law specialists regularly advise both employers and employees on the post-termination obligations incorporated into an employee’s contract of employment. Restrictive covenants for employment apply where an employee agrees not to do certain things once he or she leaves the organisation. The purpose of a restrictive covenant is primarily to protect an employer’s business and they are particularly common in the contracts of sales staff, who may have particular knowledge of an employer’s customer base, which is of significant value to the company.
There are four main types of restrictive covenant. These include non-compete covenants; non-solicitation or non-dealing covenants; non-poaching of employees; and restrictions on the use of confidential information. This is a complex area but it is important for employers to recognise that restrictive covenants should not be unreasonable in protecting their business interests, as in this case, they will become unenforceable.
The issues that should be considered in relation to restrictive covenants depend on the particular case, and on the employee which is why employers are well advised to seek professional advice if in any doubt. It is vital - as with all commercial contracts - that you do not enter into a contract without full knowledge of its implications and meaning.
If you would like further help and advice on restrictive covenants for employment, contact our expert employment law solicitors based in 020 7790 2000 (east London), 0207 471 1744 (Fulham), or 020 7182 4500 (West End) or complete our enquiry form.
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