Restrictive Covenants in Employment Contracts
A post-termination restrictive covenant usually limits what an employee can do after they have finished working. It might restrict an employee from contacting/poaching customers, clients, suppliers, or other employees. It may also restrict who an individual can work for, for a certain period of time.
Such restrictions are usually to protect the employer’s confidential information, customer connections, its goodwill and the stability of its workforce.
Restrictions have to be reasonable and cannot be too long or too harsh such as to amount to unlawful restraint of trade. Essentially, an employee must be permitted to work in some capacity, after their employment terminates. The more senior an employee, the more reasonable a restriction might be.
It’s a balancing act between an employer’s protection and an employees right to work!
Please get in touch if we can assist in either enforcing your employee’s restrictions, disputing a restriction, or drafting a reasonable restriction in an employment contract.
This page is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action. Please contact us if you have any questions