| What Is The Definition Of A Restrictive | | | | covenants are before you sign a contract of |
| Covenant? | | | | employment. |
| A restrictive covenant is a term placed into your | | | | Can Restrictive Covenants Be Enforced? |
| contract of employment to prevent you from | | | | If a covenant is reasonable and necessary to |
| taking certain action when you leave your current | | | | protect the business interests of your employer |
| role. They are put into employment contracts to | | | | then they can be enforceable. However, if your |
| protect the employer and not the employee? | | | | employer attempts to make the covenant too |
| What Types Of Restrictive Covenant Are There? | | | | broad by making it for too long a period of time |
| There are several different types of restrictive | | | | or covering too large a geographic area this may |
| covenants including the following:- | | | | prevent it from being enforceable. |
| 1. Non-competition covenants (these restrictive | | | | Another factor to take into account when |
| covenants are inserted to prevent you from | | | | considering whether a restrictive covenant is |
| working in the same area as your employer after | | | | enforceable is the position of employment of the |
| you leave. They can be for a certain period of | | | | employee; for instance, a managing director or a |
| time and within a certain specified geographical | | | | chairman of a company will have more severe |
| area). | | | | restrictive covenants than a secretary or |
| 2. Non-solicitation (these covenants will stop you | | | | receptionist for example. |
| from taking clients of your current employer). | | | | Restrictive covenants can also be rendered |
| 3. Non-poaching (this covenant is inserted to stop | | | | unenforceable if the employer fails to follow the |
| you returning to your old employer and taking | | | | disciplinary or grievance procedure laid down in the |
| staff with you to your new role). | | | | employment contract. This action alone can |
| 4. Restrictions on use of confidential information | | | | render a restrictive covenant unenforceable. |
| (these covenants will stop you from sharing | | | | Summary |
| confidential information which you obtained whilst | | | | Restrictive covenants can have a severe impact |
| you were working for your employer). | | | | on the ability to obtain employment after you |
| A restrictive covenant can have a dramatic | | | | leave your current role. You should seek expert |
| affect on your ability to obtain employment after | | | | and specialist employment advice from an |
| you leave your current role. Therefore it is | | | | employment solicitor before signing a contract |
| essential that you realise how serious restrictive | | | | that contains restrictive covenants. |