Employers can seek to impose restraints of trade on ex-employees, but these are often unenforceable.

• We can negotiate these Restrictive Covenants as part of an exit deal
• Advise on whether you are bound by them - whether you just want peace of mind or your ex-employer is threatening enforcement proceedings

Restrictive Covenants are unenforceable if they go wider than is necessary to protect the employer legitimate business interests:-

• An ex-employer is generally not able to restrain you from orking in a competing business or soliciting ex-customers
• Trade secrets and trade connections are legitimate business interests that an ex-employer can protect

There are 3 common types of Restrictive Covenants:

1. Non-competion covenants
2. Non-solicitation and non-dealing of customers covenants
3. Non-solicitation of employees covenants

Courts are reluctant to uphold non-competition restrictions:-

• The ex-employer must show that the you had acquired influence over his customers and
• This is the only way of protecting confidential information
• Even then, if you are barred from competing within a specified geographical area, it must not be wider than the area within which you did business

If you are restrained from soliciting or dealing with customers or clients:-

• The covenant will have to apply only to those who you dealt with directly and should only apply for a reasonable period of time

If you are restricted from poaching members of staff once you have left:-

• The covenant must specify which category of employee you can't approach or it is likely to be unenforceable

Employers can only restrict employees for a reasonable length of time - between 3 and 6 months is the norm and longer periods can only be justified in exceptional circumstances.

Please contact us to discuss how our specialist employment law solicitors can help you.