Restrictive Covenants

Well advised businesses will have terms in their contracts of employment, shareholders’ agreement or partnership agreement that restrict what a departing employee, director or partner can do after they leave.

These terms are generally referred to as restrictive covenants and may restrict a departing person from competing directly and or poaching clients and employees. We act for businesses seeking to enforce restrictive covenants and for individuals who wish to avoid unenforceable restrictive covenants that are preventing them from starting a new job or new business.

Whether the company can rely on the restrictive covenants will depend on the precise facts and its own conduct.

An injunction may be the appropriate remedy and to obtain one the applicant must act quickly.