Post-termination restrictive covenants are contractual terms which restrict an employee’s activities after the termination of their employment. Restrictive covenants are often found in contracts of employment and by signing up to them; employees are agreeing not to do certain things after their employment has ended.
Restrictive covenants are designed to protect the (former) employer against the (leaving) employee using any of the trade secrets or confidential information which they had access to during their employment whether for the benefit for themselves or for their new employer.
Common restrictive covenants include the following:
- non-dealing (prevents you from contacting or being contacted by clients or customers of your former employer);
- non-compete (prevents you from working for a competitor of your former employer);
- non-solicitation (prevents you from taking away customers or clients from your former employer);
- non-poaching (prevents you from poaching employees from your former employer); or
- non-disclosure (prevents you from disclosing confidential information).
The consequences of breaching a valid restrictive covenant can be harsh and expensive. Our employment law team have complete knowledge of restrictive covenants and are ideally positioned to advise you of any issues that may arise as a result of restrictive covenants in your employment contract.
For employees
If you have post-termination restrictions in your employment contract, it’s vital to understand their implications. We can help by reviewing and advising you on what restrictions you will be signing up to and how this impacts you during and/or after your employment. If you’ve already signed up to restrictive covenants; we can advise you on whether the extent of the restraint is reasonable according to parameters established by case law.
For employers
A leaving employee can cause real damage by, for example, poaching key customers or other employees. If you find yourself with such a situation, get in touch with us straightaway. We can meet with you urgently to advise you on your options. If necessary, we’ll issue an application to court for an injunction to prevent the former employee from causing your business any (or any further) damage.
If you’re a start-up company, our team also has extensive expertise in drafting bespoke restrictive covenants to be included within contracts of employments in order to protect your business’ interest.
For more information, please contact our employment law team on 0161 834 2623.