Restrictive Covenants

In order to protect your business, it is often imperative that employees continue to be bound by post-termination obligations such as restrictive covenants when they leave to join a competitor.  

Such covenants can take on several different forms but the most common would be to prevent an employee from working for a competitor, or at least within a certain geographical proximity to the business for a certain period of time.  It is imperative that such covenants are well-drafted in order to be enforceable so as to best protect the company’s interests.

Whether or not such covenants are enforceable is something that must be considered on a case by case basis.  They must not exist merely to restrict competition – rather, they must exist to protect a legitimate business concern of the employer imposing them.  They should not be overly onerous (such as in terms of timescales, or radius within which a former employee cannot work), otherwise they may not be capable of being enforced.

 

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