Employment restrictive covenants

With the vital importance of IP and confidential information such as know how, clients and suppliers, many employers rely on inserting restrictive covenants in contracts of employment to protect their interests.

It can be tempting to make these as strong and wideranging as possible but this is generally ill advised. Alex Kennedy explains why and the main points and issues with restrictive covenants :

1. What do common post departure restrictions include?
2. Working for competitors, setting up in competition and poaching of staff.
3. Why the courts are willing to overturn restrictions because of public policy on restraint of trade.
4. Do the restrictions protect legitimate business interests - are they proportionate and reasonable and go no further than is necessary?
5. Considerations for reasonable restrictions generally include the length of restriction, geographical extent and what types of activity or work are restricted.
6. Drafting of restrictive covenants should involve great care.
7. How can an employer enforce a breach of an employment restrictive covenant?
8. Why injunction applications are common - what are the risks and potential benefits?
9. The use of restrictive covenants in the sale of a business.