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Employment Litigation & Covenants
Our team have a wide knowledge of restrictive covenants and are able to support and advise you with any issues that may arise as a result of such clauses in your employment contract; shareholder agreement; partnership agreement; compromise agreement; business/share sale agreement or consultancy agreement.
Restrictive Covenants are a complex and ever evolving area of employment law, they can be included in agreements in order that you are prevented from competing for business with your employer if your contract is terminated. Restrictive covenants are commonly used in executive, banking and broker contracts where a potential competition issue may arise. Our Employment Litigation & Covenants team can give you the support and advice you need.
Employment Litigation & Covenants: Types of post termination restrictions
There are generally five types of post termination restrictions which an employer may include in a contract of employment to seek to protect its legitimate business interests.
Confidentiality Clause
A confidentiality clause imposes a duty to keep secret the employer’s trade secrets or confidential information. Trade secrets or confidential information could include, for instance, know how, pricing lists or customer lists. Remember that even without an express contractual confidentiality clause, you will still owe an implied duty of confidentiality to your former employer.
Non-Solicitation Clause
A non-solicitation of customers clause imposes a duty not to approach your ex employer’s customers or prospective customers with a view to doing business with them.
Non-Dealing Clause
A non-dealing clause also aims to prevent you from doing business with your ex employer’s customers or potential customers. However, a non-dealing clause is distinct from a non-solicitation clause, in that it aims to prevent you from dealing with a customer or client who may have come to you for your services or expertise even where you have not encouraged such an approach.
Non-Compete Clause
A non-compete clause aims to prevent you from working for a competitor in a competing capacity, or seeking to set up a competing business.
Non-Poaching Clause
A non-poaching clause aims to prevent you from trying to take your ex-employer’s staff with you to your new employment or business.
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