Restrictive Covenants in Employment: What They Mean and How to Handle Them

What Are Restrictive Covenants?

A restrictive covenant is a clause in your employment contract that limits what you can do once you leave your job. Employers use them to protect things like client relationships, confidential information, and trade secrets, but a covenant is not automatically valid just because you signed it. UK courts will only enforce a restrictive covenant if it goes no further than necessary to protect a genuine business interest.

The Main Types of Restrictive Covenant

Most restrictive covenants fall into one of five categories, and your contract may include several at once:

• Non-compete clauses: stop you from working for a competitor or setting up a rival business for a set period after you leave.

• Non-solicitation of clients: stop you from approaching customers or clients you dealt with to bring their business to a new employer.

• Non-dealing clauses: go further than non-solicitation by banning any business dealings with certain clients, even if they approach you first.

• Non-poaching of colleagues: stop you from encouraging former colleagues to leave and join you elsewhere.

• Confidentiality clauses: protect trade secrets and confidential business information, and these typically continue indefinitely rather than expiring after a fixed period.
  
  

Speak to an employment law specialist

If you are worried a restrictive covenant could limit your next move, we can review it. Book a 30-Minute Advice Session — £99 for direct telephone advice and a written summary, or request a free case review first.

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