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Restrictive Covenants and injunctions in employment contracts

Departing employees always pose a risk to a business if they take advantage of its confidential information, customer details or other information relating to the business. They may use this information for the benefit of a competitor and to the detriment of your business, or else to set up a competing business. The consequences for your business from not having restrictive covenants can be serious and costly.

It is advisable to include express restrictions in certain employee’s contracts of employment to restrict their activities for a period of time after they leave your business.

Restrictions must be reasonable and very carefully drafted in order to protect your business, confidential information, customer and supplier relationships and workforce. ‘Blanket restrictions’ which are not specifically tailored to the employee in question, afford more protection than is necessary, are solely aimed at preventing competition and seek to prevent the employee from earning a living will almost certainly be unenforceable and should be avoided altogether.

It is important to seek advice to ensure that any contractual restrictive covenants are appropriately drafted and likely to be enforceable. Restrictions should be regularly reviewed and revisited in line with any promotion or change of role. We can review or draft restrictions on your behalf.

A departing employee should always be reminded of their restrictive covenants and you should act immediately if you suspect an employee is acting in breach of their contract to avoid prejudicing your rights of action. We can provide urgent assistance if an ex-employee is breaching their contract and damaging your business.

For further advice and assistance, please call our Head of Employment, Lianne Payne, on 024 7623 1000.

Contact one of our Solicitors in Coventry: enquiries@askewslegal.co

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