Post-termination Non-compete Clauses: Proposed Reforms

Rebecca Jackson highlights proposed reforms to the law surrounding post-termination non-compete clauses in employment contracts, and considers what any changes might mean for employers.

Proposed reform: What employers need to know

Following termination of their employment, ex-employees often have the opportunity to utilise confidential information, strategic plans, customer/client details or other important information relating to the employer's business, to benefit a new or rival business. It is therefore common for employers to include, in the contract of employment, express contractual terms with a view to preventing employees from disclosing confidential information, competing, soliciting clients and poaching employees. Such provisions are often referred to as restrictive covenants or post-termination restrictions.