Whether you are a business seeking to protect your interests, or an employee concerned about restrictions on your future, our expert solicitors provide clear, robust advice on the enforceability and negotiation of restrictive covenants.
Restrictive covenants are clauses in an employment contract designed to protect a business's legitimate interests after an employee leaves. For a covenant to be enforceable, it must be reasonable and go no further than necessary to protect those interests.
Prevents an ex-employee from working for a competitor or setting up a competing business for a specific period in a defined geographical area.
Prevents an ex-employee from approaching clients, customers, or suppliers of their former employer to win their business.
A stricter clause that prevents an ex-employee from doing business with former clients or customers, even if the client approaches them first.
Prevents an ex-employee from encouraging their former colleagues to leave the company and join them at their new venture.
The Situation: An employee's contract contained a non-compete clause that prevented her from being "interested or concerned in" any competing business for six months. She argued this was too broad as it unfairly stopped her from even holding minor shares in a competitor.
The Outcome: The Supreme Court agreed the clause was too wide. However, they ruled the court could "sever" the unreasonable words ("interested or") to make the rest of the clause enforceable. The employee was still prevented from working for the competitor.
What this means for you: This case is crucial. For employers, it shows that while covenants must be reasonable, the courts can sometimes save a poorly drafted clause. For employees, it shows that you cannot assume a clause is entirely void just because one part is too wide. Expert legal advice is essential to understand your precise position.
The key is "reasonableness." Covenants must be specifically drafted to protect a legitimate business interest (like clients, staff, or trade secrets) and be no wider than necessary in terms of duration, geographical scope, and the activities they restrict. A generic, copied clause is likely to be unenforceable.
You must act quickly. The main remedy is to apply to the court for an injunction to stop the employee's actions. You can also claim for financial losses. We can send a solicitor's letter as a first step, which is often enough to resolve the situation without court action.
Yes, but you must do so formally. A promotion is a good opportunity to review and update an employee's contract and covenants to reflect their increased seniority and access to sensitive information. The new covenants must be agreed upon and signed by the employee to be valid.
Not necessarily. Covenants must be appropriate for the employee's role. A six-month non-compete clause that might be reasonable for a senior director would almost certainly be unreasonable and unenforceable for a junior administrator with no client contact.
It depends. The default position in UK law is that covenants are void unless the employer can prove they are reasonable and necessary to protect a legitimate business interest. If a clause is too long, covers too wide a geographical area, or restricts you too much, it may be unenforceable. We can review your contract and give you a clear assessment.
Do not ignore it. Seek independent legal advice immediately. We can review the situation, advise you on the strength of their claim, and respond on your behalf. An early, strategic response can often prevent the matter from escalating to a costly court injunction.
Yes, absolutely. The point of negotiation is the best time to address any concerns. If you feel a proposed covenant is too restrictive and could unfairly impact your future career, we can advise you on reasonable amendments and negotiate with your new employer on your behalf.
Generally, no. An employer cannot unilaterally impose new or more onerous restrictions on you after you have resigned. The covenants that matter are the ones you agreed to in the contract you signed. Any attempt to add new restrictions during your notice period would likely be unenforceable.
Don't leave your business interests or your future career to chance. Let our specialist solicitors provide the clarity and robust legal support you need.
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