The advent of globalization, technological advancements, trans
border transactions, frequent employment shifts and increased
competition between businesses have necessitated increased
complexity in the relationship between an employer and an employee
calling for a detailed employment contract to be executed between
both these parties.
In order to safeguard the business, employers have started
including certain restrictive covenants within the scope of
employment contracts. As the term suggests, a restrictive covenant
refers to a clause that restricts or limits an employee from
performing certain acts, both during and after the conclusion of
the employment contract. Restrictive covenants would include
clauses such as non-compete, non-solicitation and protection and
non-disclosure of confidential information. Employment contracts
also contain an innocuous though essential clause regarding return
of the company's property.
