Restrictive covenants are a complex and changing area of the law. They are essentially a legal tool to prevent you from doing something and often their aim is to prevent you from competing with your employer after you employment ends. This may include a restriction on you working within a certain radius of your current employer or preventing you from dealing with your employer’s customers or business contacts.
If you breach a restrictive covenant, your employer may apply for enforcement. If an employer can show that a restrictive covenant is in place to protect its legitimate commercial interests and it only extends in so far as to reasonably protect those interests, then the Courts are likely to find that it is enforceable.
Defending a breach of restrictive covenant can be costly and time consuming. It can result in an injunction being imposed on you to prevent business activities as well as claim for damages being made by your employer.
If you are considering signing a contract that includes a restrictive covenant, you should seek specialist legal advice.
If an allegation has been made that you have breached a restrictive covenant then legal advice at an early stage is essential.
