Restrictive covenants in employment contracts are
anti-competitive, restrictive on trade and against public
policy. A court will only enforce a restrictive covenant if it
protects a legitimate business interest (trade secret or
confidential information, client base, key employees or
supplier relationships) and if it extends no further than is
reasonably necessary to protect that interest (Herbert
Morris Ltd v Saxelby [1916] AC 688 (HL)). In addition
recent case law highlights emerging trends in the
court’s approach and other factors taken into
consideration.
The restrictive covenant must be drafted specifically to
protect the identified legitimate business interest using means
that are reasonably necessary, especially relating to the
duration, scope and nature and effect of the restriction. In
Wincanton Ltd v Cranny and SDM European Transport Ltd
[2000] IRLR 716,CA the failed covenant was a general
