The HR Space: Making Restrictive Covenants Enforceable

The HR Space is edited by Louise Béchamp, Karen M. Sargeant and Brian P. Smeenk.

Many of our recent articles have focused on decisions involving employees' breaches or threatened breaches of restrictive covenants. Including restrictive covenants, such as non-solicitation and non-competition covenants, into employment contracts is important for employers to protect their business interests. In order to be enforceable, however, such covenants must be tailored to the specific business needs of the employer and the context of the individual employment relationship. This article steps back and takes a look at the governing principles.

Is the restriction reasonable?

Restrictive covenants must be reasonable, unambiguous, and suitably limited in terms of scope, territory and duration.