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ARTICLE · 23 JULY 2021

Understanding Restrictive Covenants

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People are at the heart of any business and form an important resource which needs protecting. But when employees move on, it is important to have the necessary protection in place to ensure ...

United KingdomEmployment and HR
Matt McDonald
Matt McDonald

People are at the heart of any business and form an important resource which needs protecting. But when employees move on, it is important to have the necessary protection in place to ensure that there are no adverse effects caused by their departure.

An employee attempting to divert customers, poach staff or set up a rival business in competition are all matters that can be covered by restrictive covenants within their employment contract and you may be entitled to obtain injunctive relief to prevent a breach and/or damages for any business already lost by their actions.

What is a restrictive covenant?

A restrictive covenant is typically a clause in a contract which prohibits an employee from doing some or all of the following for a defined period after they have left the business:

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