Restrictive Covenants In Malta – The Court's Views And Guidelines

What are Restrictive Covenants?

Restrictive covenants are contractual provisions that impose limitations on a party's actions, which are often found in employment and property agreements.

The most common types of restrictive covenants include:

1. non-compete clauses, which prevent employees from working for competitors or starting similar businesses within a specific time and area after leaving a job;
2. non-solicitation clauses, which forbid former employees from poaching clients or colleagues; and
3. non-disclosure agreements, which protect confidential information.

From a real estate perspective, restrictive covenants might limit the use of a property, such as restricting certain developments or activities.