Restrictive covenants

A restrictive covenant is an agreement (usually a clause within a contract of employment) between an employer and an employee that restrains the employee from carrying out certain actions both during employment and in the event that the employment ceases.

The actions that covenants commonly seek to prevent a former employee from carrying out include: competing with the employer, taking the employer's trade secrets and soliciting the employer's clients and/or staff.


The 10 most important employment law cases in 2019

We round up the most significant cases of the year including legal judgments on CCTV, restrictive covenants, enhancing shared parental leave, collective bargaining and more...

To compete or not compete, that is the question

10 Jul 2019

The recent judgment on restrictive covenants in contracts, Tillman v Egon Zehnder, overturned a century-old principle on competition clauses. But...

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Supreme Court overturns long-held principle on non-compete clauses

3 Jul 2019

The Supreme Court hands down a decision that overturns a century-old principle on employee competition clauses.

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Mary-Caroline Tillman

Non-compete clause case should give business pause for thought

28 Jan 2019

Businesses, particularly in the finance, technology, pharma, IT and manufacturing sectors use non-compete provisions to protect against potentially unfair competition...

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Wording of restrictive covenants comes under Supreme Court spotlight

23 Jan 2019

Employers are being warned about the wording of restrictive covenants...

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Six employment law decisions that will shape 2019

11 Jan 2019

Which employment law decisions will shape 2019? We outline six of the most significant cases in the pipeline – from...

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Nine New Year’s resolutions for HR

8 Jan 2019

You may be eating more healthily, exercising more or doing dry January, but for HR professionals returning to work, legal...

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Springboard injunctions: Case law shows mixed success

21 Sep 2017

Employers often use interim or “springboard” injunctions to protect confidential information after employees decide to leave. But they are not...

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Restrictive covenants: would a “non-compete” clause have kept Mary Berry on the Bake Off?

31 Oct 2016

The Government is considering a ban on restrictive covenants, but would this open the door to more poaching of staff?...

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What the Great British Bake Off teaches us about retaining talent

22 Sep 2016

Fans of the Great British Bake Off are still reeling from the news it will move from the BBC to...

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Restrictive covenant breach: £30,000 and injunction for employer

22 Aug 2016

In DLA Piper’s latest case report, the High Court awarded damages of £30,000 and gave an injunction to a company...

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Employment-law-in-France

Employment law in France: five fascinating features

8 Jul 2016

What are the key things international employers need to know about employment law in France? Laura Merrylees looks at five...

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Non-competition clauses: Government to examine impact on innovation

26 Apr 2016

The Government is to examine whether or not non-competition clauses in employment contracts are stifling innovation and growth.
Restrictive covenants,...

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Restrictive covenant review as the job market recovers

1 Oct 2015

Employers that have not updated restrictive covenants in their employment contracts should do so as the jobs market improves, and...

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TUPE

TUPE: Protecting employers’ interests with post termination restrictions

3 Jul 2015

Discussions around the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) often place the emphasis on transferring employees’ rights....

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