A prudent employer should think about how to protect their business interests in the event that an employee chooses to leave.
Employees may have access to confidential and commercially sensitive information during their employment, as well as valuable contacts and client databases.
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To provide protection, restrictive covenants may be included in an employment contract or may form part of a separate contractual policy or agreement. Whichever format you choose, our team can provide expert advice to ensure your business interests are adequately protected.
Common examples of restrictive covenants include:
Confidentiality Clauses (which impose a duty on the ex-employee to keep your business information a secret);
Non-poaching clauses (which prevent your ex-employee from taking your staff to new employment or a business);
Non-compete clauses (which prevent the ex-employee from working for a competitor or seeking to set up a competing business);
Non-solicitation clauses (which impose a duty for an ex-employee not to approach your business’s existing or prospective customers or clients with a view to doing business with them).
The type, extent and duration of the clauses required will depend on the nature of your business. It is important to ensure that any restrictive covenant clauses are reasonable and only as wide as necessary to protect the legitimate commercial interests of the business, otherwise a court may find them to be unenforceable.
As well as advising on the types of clauses you should include, our team can also provide advice on restrictive covenant disputes, which usually occur when employees breach covenants after their employment has ended.
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Contact our Restrictive Covenants specialists today on0191 232 3048
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