Restrictive Covenants

Championing

Wellbeing

Restrictive Covenants

Restrictive Covenants in Employment Contracts

Restrictive covenants (also known as post-termination restrictions) are clauses in an employment contract that limit what an employee can do after leaving their role. Their purpose is to protect genuine business interests – such as client relationships, confidential information, or the stability of the workforce – rather than to prevent someone from working altogether.

These clauses are most commonly used where employees have access to sensitive information, strategic insight, key customer relationships, or influence over other staff.

The Most Common Types of Restrictive Covenants

Restrictive covenants typically fall into a few key categories:

Type of Covenant	What It Restricts	Purpose
Non-Compete	Prevents working for a competitor or starting a competing business for a set time period	Protects competitive advantage and business strategy
Non-Solicitation	Prevents approaching or encouraging clients, customers, suppliers, or prospects to move	Protects client relationships and revenue
Non-Dealing	Prevents working with or providing services to former clients or customers, even if they approach first	Safeguards established commercial relationships
Non-Poaching / Non-Enticement	Prevents recruiting or encouraging current employees to leave	Maintains workforce stability
Confidentiality Clause (usually ongoing indefinitely)	Restricts use or disclosure of confidential information, trade secrets, and sensitive data	Protects business information and commercial value

Some contracts also include non-disparagement clauses to prevent reputational harm, though their enforceability varies depending on how they are drafted.

When Are Restrictive Covenants Enforceable?

For a covenant to be enforceable, it must be reasonable. This means it must:

Protect a legitimate business interest
Be no wider than necessary in terms of duration, geographic scope, and activities restricted
Not prevent an individual from earning a living altogether

The seniority of the employee and their access to confidential relationships or information are key considerations. The more influence an employee has, the more reasonable a longer or broader restriction is likely to be.

If drafted too widely or applied unnecessarily, a covenant may be considered an unlawful restraint of trade and therefore unenforceable.

Contact Us

Why This Matters

Restrictive covenants can provide vital protection – but only when drafted carefully and reviewed regularly. Many covenants are unenforceable simply because they are generic or outdated.

Support for Employers

We can help you:

Draft and review restrictive covenants tailored to specific roles
Ensure covenants reflect genuine business risks and are likely to hold up legally
Respond to suspected breaches with clear guidance and decisive action
Seek injunctions or damages where necessary

Addressing restrictive covenants proactively helps avoid disputes, protect client relationships, and maintain workforce stability.

Support for Employees

If you are leaving your role or considering a job move, we can: