Post-termination restrictive covenants

What are they?

Restrictive covenants are usually found in your contract of employment (or sometimes a separate document) and they seek to restrict your activities after you leave your employment.

The common clauses are as follows:

Non- competition – for a certain period of time, you cannot set up in business in competition with your ex-employer or work for a competing business.

Non-solicitation of customers – for a certain period of time, you cannot contact your employer’s customers to take away their business, in competition with your ex-employer.

Non-dealing with customers – for a certain period of time, you cannot deal with your employer’s customers who contact you to do business with you, in competition with your ex-employer.

Non-poaching of staff – for a certain period of time, you cannot entice away other members of staff to work in competition with your ex-employer.

Are they enforceable against you?

They are void as being in restraint of trade, unless they protect a legitimate business interest of your employer and they go no further than is required to protect that legitimate business interest.

If an ex-employer considers that you are in breach of restrictive covenants, they can take steps to obtain an injunction or make a claim for damages against you.

When should I take advice?

You should seek advice before you sign a contract of employment or other document containing restrictive covenants. You may also wish to seek advice in relation to any existing restrictive covenants which you have signed up to, particularly when you are considering changing jobs.

Our advice

We are experienced in reviewing restrictive covenants and we can advise you about the covenants and tactically, how you should deal with this issue.

If you would like to discuss post-termination restrictive covenants, please contact our Employment Solicitor, Julia Woodhouse on 024 7653 1532 or email Julia.Woodhouse@bttj.com.

Our solicitors work across the whole of the Coventry and Warwickshire region including Rugby, Nuneaton, Bedworth, Leamington Spa, Kenilworth, Warwick, Atherstone and Balsall Common as well as further afield.

 

The above is not intended to provide advice.