What we do
We use our detailed and in-depth knowledge of the law relating to restrictive covenants and confidential information to strengthen and help protect our clients’ businesses; minimising the chance of disputes arising in the first place, but if they do, helping them to take quick and decisive action to prevent third-parties from gaining an unfair competitive advantage.
Restrictive covenants are a common feature of many employment contracts, particularly for high-level employees or those in positions where they have access to valuable business information. Restrictive covenants are designed to protect key parts of an employer's business, such as its trade secrets, customer relationships, and other confidential information, by restricting an employee's post-termination activities.
Restrictive covenants must be carefully worded to be valid and enforceable and must go no further than is reasonably necessary in order to protect the an employer’s legitimate business interests. It’s vital for that reason to ensure that the restrictive covenants contained in your own employment contracts and director level service agreements are expertly drafted from the outset.
types of restrictive covenants
There are several types of restrictive covenants, including non-compete clauses, non-solicitation clauses, and non-disclosure clauses. Non-compete clauses, for example, prohibit the employee from working for a competitor or starting a competing business for a certain period of time after leaving the company. Non-solicitation clauses prohibit the employee from soliciting or poaching the company's customers or employees after leaving the company. Non-disclosure clauses prohibit the employee from disclosing confidential information about the company or its clients.
Enforceability
The enforceability of a restrictive covenant depends on several factors, including the specific language of the covenant, the nature of the employer's business interests, and the reasonableness of the restrictions. Courts generally dislike restrictive covenants that are overly broad or that place unreasonable restrictions on the employee's ability to earn a living. We work closely with employers must ensure that their restrictive covenants are drafted narrowly to protect legitimate business interests and so that they do not unfairly restrict the employee's ability to work.
DISPUTES
If an employee breaches a restrictive covenant, the employer may be entitled to injunctive relief, damages, or both. Injunctive relief may be used to prevent the employee from engaging in the prohibited activity, while damages may be awarded to compensate the employer for any losses suffered as a result of the breach.