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Restrictive Covenants in Employment Contracts
A restrictive covenant in an employment contract seeks to limit the activities of an ex-employee after they leave the employment of their employer. They often take a number of forms:
- Non-deal: the ex-employee will not deal with former customers for a period of time.
- Non-solicit: the ex-employee will not approach former customers for a period of time.
- Non-poaching: this often relates to former colleagues who remain with the business from which the ex-employee has left. The ex-employee will be required not to try to recruit his former colleagues from the former employer for a period of time.
These types of clauses are only enforceable to the extent that they protect the legitimate business interests of the employer. If the restrictive covenants are any wider than that, the covenants will be unreasonable and therefore unenforceable.
If you have an issue with a restrictive covenant, please talk to us. The breach of these clauses can be damaging to both parties. Employers can lose lots of business through loss of customers or contracts, whilst an ex-employee can face a claim for damages and an injunction.
Greg Hollingsworth regularly acts on High Court disputes relating to the enforceability of restrictive covenants for both employers and employees, and can provide practical and commercial legal advice on problems with restrictive covenants, such as non-deal, non-solicit and non-poaching clauses.
Bradshaw Hollingsworth provide specialist legal advice in the areas of Employment Law, Litigation, Commercial, Insolvency, Debt Recovery, Wills & Probate and Property, including residential conveyancing, house sales, house purchases and re-mortgages. For more information about our services please contact Greg Hollingsworth of Bradshaw Hollingsworth Solicitors, 19 New Walk, Leicester on 0116 204 2500 or by email at greg.hollingsworth@bhlaw.co.uk.
Partners: Robin Bradshaw and Greg Hollingsworth - Bradshaw Hollingsworth is regulated by the Solicitors Regulation Authority.
