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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 (a non-compete clause), taking the employer’s trade secrets and soliciting the employer’s clients and/or staff.


    • Garden leave
    • Restrictive covenants

    Garden leave: the employer’s prerogative

    by Meriel Schindler 16 Dec 2014
    by Meriel Schindler 16 Dec 2014

    Meriel Schindler, head of employment at Withers LLP,  looks at how employers should respond to employee resignations and how to...

    • Garden leave
    • Restrictive covenants

    Key tips for avoiding errors when drafting restrictive covenants

    by Kate Brearley and Kiersten Lucas 29 Aug 2014
    by Kate Brearley and Kiersten Lucas 29 Aug 2014

    Restrictive covenants are one of the key weapons in the fight against unlawful competition by former employees. Drafting enforceable restrictions...

    • Employment law
    • Restrictive covenants

    When can courts allow inspection of employees’ home computers?

    by Chris Cook 24 Jun 2014
    by Chris Cook 24 Jun 2014

    The recent case of Warm Zones v Thurley and Buckley is an important High Court decision that has given increased...

    • Constructive dismissal
    • Garden leave
    • Restrictive covenants

    Is garden leave overrated?

    by Charles Wynn-Evans 18 Dec 2013
    by Charles Wynn-Evans 18 Dec 2013

    Charles Wynn-Evans questions whether garden leave is all it is cracked up to be or if there are hidden pitfalls...

    • Employment law
    • Legal opinion
    • Opinion

    Legal opinion: When are restrictive covenants enforceable?

    by Paras Gorasia 11 Jun 2013
    by Paras Gorasia 11 Jun 2013

    Barrister Paras Gorasia looks at how employers can improve the chances of a restrictive covenant being enforceable. When and whether...

    • Employment law
    • Discipline and grievances
    • Legal opinion

    Legal opinion: Is it gross misconduct to set up in competition to your employer?

    by Emma Hammond 24 Aug 2012
    by Emma Hammond 24 Aug 2012

    As the private sector continues to battle Britain’s economic woes and jobs are shed on a weekly basis, a growing...

    • Employment law
    • Opinion
    • Restrictive covenants

    Legal opinion: When are non-solicitation clauses enforceable?

    by Alex Denny 12 Mar 2012
    by Alex Denny 12 Mar 2012

    Towry EJ Limited v Raymond James & Others, which dealt with restrictive covenants in the financial services sector, was the...

    • Employment law
    • Recruitment & retention
    • Garden leave

    Legal opinion: Taking a proactive stance on competitor poaching

    by John Buchanan 19 Sep 2011
    by John Buchanan 19 Sep 2011

    As the economy recovers, competition for skilled employees increases. In order to grow the business, many companies aim to recruit...

    • Employment law
    • Restrictive covenants

    Weekly dilemma: Post-termination restrictions

    by Personnel Today 2 Mar 2011
    by Personnel Today 2 Mar 2011

    I’ve just finished interviewing for a senior sales position in my technology company, but if the successful applicant doesn’t work...

    • Employment law
    • Restrictive covenants

    Weekly dilemma: restrictive covenants

    by Personnel Today 25 Feb 2010
    by Personnel Today 25 Feb 2010

    Q I am the director of a popular advertising agency. According to company policy, all of our senior staff have...

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    M&S CEO Bolland banned from poaching former Morrisons colleagues

    by Personnel Today 22 Feb 2010
    by Personnel Today 22 Feb 2010

    Incoming Marks & Spencer chief executive Marc Bolland will be prevented from poaching executives from Morrisons for a year, it...

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    by Personnel Today 19 Oct 2009

    Hollywood bosses are inserting clauses into actors’ contracts to stop them leaking film information on social networking sites such as...

    • Collective redundancy
    • Employee relations
    • Employment law

    Collective redundancy: ECJ ruling muddies the waters

    by Personnel Today 17 Sep 2009
    by Personnel Today 17 Sep 2009

    A European Court of Justice ruling about a Finnish collective redundancy case could affect UK employers' decisions on when to start collective consultation about redundancies.

    • Employment law
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    by John Charlton 10 Mar 2009

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    • Employee relations
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    How to have without prejudice off-the-record discussions safely: peril and prejudice

    by Personnel Today 15 Sep 2008
    by Personnel Today 15 Sep 2008

    Michael Farrelly looks at the perils of using off-the-record discussions between employer and employee in disputes.Conciliatory correspondence can often create...

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