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Restrictive covenants are essential legal tools that help employers protect their business interests when an employee leaves the organisation. At Franklins Solicitors, we advise employers on how to draft, review, and enforce restrictive covenants to minimise risk, protect client relationships, and safeguard confidential information.
Whether you’re entering into new employment contracts or seeking to enforce post-termination restrictions, our experienced employment solicitors are here to help.
Restrictive covenants are clauses in an employment contract that limit what a former employee can do after their employment ends. They are designed to prevent unfair competition and protect sensitive business interests, but they must be carefully drafted to be legally enforceable.
Typical types of restrictive covenants include:
Restrictive covenants are only enforceable if they are reasonable in scope and necessary to protect your legitimate business interests. The burden of proof lies with the employer.
To be enforceable, a covenant must:
Courts will strike out any clause that is too wide, too vague, or appears to unfairly restrict an individual’s right to work. That’s why expert legal drafting and tailored advice are essential.
We work closely with employers to ensure that restrictive covenants are:
Whether you’re preparing employment contracts for new hires or reviewing existing agreements as roles evolve, we can help you build strong protections that stand up in court.
Enforcing Restrictive Covenants
If a former employee breaches their restrictive covenants, time is of the essence. Franklins Solicitors offers rapid, decisive action to protect your business interests, including:
We have extensive experience in urgent High Court applications and will act quickly to limit the damage caused by breach of contract. Where necessary, we can also advise on enforcement against third parties, such as the employee’s new employer, if they have knowingly induced the breach.
The more senior the employee, the greater the access they may have had to strategic information and key business contacts. As such, we recommend bespoke covenant drafting for directors, shareholders, and C-suite roles, which may also include:
These added layers of protection are vital for businesses operating in competitive sectors.
A restrictive covenant is a clause in a contract which prohibits an individual from carrying out certain activities for a specified period after their employment has ended. It’s designed to protect a company’s legitimate business interests.
The main types include non-compete covenants (preventing an ex-employee from working with a competitor), non-solicitation and non-dealing covenants (preventing an ex-employee from contacting clients or customers), and non-poaching covenants (preventing an ex-employee from hiring former colleagues).
Restrictive covenants are particularly relevant to businesses that have valuable trade secrets, client databases, or highly skilled staff. They’re commonly used in sectors such as technology, finance, recruitment, and professional services.
In the case of Tillman v Egon Zehnder Ltd (2019), the Supreme Court clarified that if part of a covenant is too wide (and therefore unenforceable), it can be removed (“severed”) to make the rest of the covenant enforceable.
If an individual or business breaches a restrictive covenant, it’s advisable to seek legal advice immediately. Remedies can include renegotiating the covenant, ceasing the activity causing the breach, or preparing for possible legal proceedings.
If a business believes another party is breaching a restrictive covenant, they should gather evidence of the breach and seek legal advice. They may be able to obtain an injunction to prevent further breaches and claim damages.
If you have any questions about employment law, please don’t hesitate to contact our team of experts who are on hand and ready to help you.
