Employee competition

Many employers will have key personnel who could materially damage their business if they were to leave. For example, that could be because they have knowledge of business-critical confidential information and know-how, significant influence over clients and customers or because they might seek to poach other important members of staff.

What are post-termination restrictions and restrictive covenants?

To protect themselves, employers will often insert post-termination restrictions and restrictive covenants into contracts of employment. These are interchangeable terms for types of restriction that apply after employment has finished. They include clauses preventing employees from soliciting or dealing with the employer’s clients or customers, poaching the employer’s employees or working for the employer’s competitors.

If an employer wishes to implement post-termination restrictions, the best time to do so is at the start of the employment relationship or when an employee is promoted into a role for which restrictions might be necessary.

However, it can be possible to implement restrictions at other points in the employment relationship and B P Collins’ expert solicitors can advise employers on strategies for implementing new post-termination restrictions.

What does a post-termination restrictions and restrictive covenant solicitor do?

Our expert post-termination restrictions and restrictive covenant solicitors regularly advise on litigation and about restrictions and can help you devise a strategy with the aim of putting you in the best position possible: whether that seeking to enforce the restrictions in court or seeking a negotiated outcome which is acceptable to all parties.

Are post-termination restrictions and restrictive covenants enforceable?

Not all post-termination restrictions and restrictive covenants are enforceable. There are a number of legal tests which must be satisfied and poorly drafted or unreasonable restrictions may not be upheld in court. For that reason, taking legal advice on restrictions is essential. B P Collins’ experienced post-termination restriction solicitors regularly draft these types of restrictions for their clients and will work to maximise the prospects of a court enforcing those restrictions.

Garden leave

Many employment contracts also include garden leave clauses. These clauses usually allow employers to require employees not to attend work or contact any of the business’ clients or customers during their notice period. While on garden leave, an employee remains your employee,  meaning they are still bound by the terms of their contract and are restricted from working anywhere else. This makes garden leave some of the best protection you can get for your business.

Injunctive relief

If you think a former employee has breached a post-termination restriction, then it is imperative that you take advice at the earliest opportunity. This is because you may want to consider applying to the court for injunctive relief (i.e. a court order restraining the former employee from taking the steps which would breach the restriction). A key factor in the decision as to whether to grant injunctive relief will be whether or not the employer has delayed taking action.

Why choose B P Collins as your employee competition, post-termination restriction and restrictive covenants solicitors?

With 50+ years of experience and extensive knowledge, we’re consistently ranked in legal directories such as Chambers UK and The Legal 500, for the strength of our employment practice.

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We pride ourselves on achieving the best possible and most cost effective outcomes for our clients, be that through pursuing a strike out of some or all of a claim or defence or negotiating an appropriate settlement.

View our price and service transparency here.

Contact our employment solicitors today

For further information or advice please contact our post-termination restriction and restrictive covenants lawyers, who are based in London, Ickenham, Thame and Gerrards Cross, on 01753 889995 or enquiries@bpcollins.co.uk.

 

Employee competition, post-termination restrictions and restrictive covenants FAQs

Can employees ignore a post-termination restriction or restrictive covenant?
Ignoring post-termination restrictions and restrictive covenants would be extremely risky. Ultimately, a former employee who ignores a post-termination restriction or restrictive covenant could face urgent litigation from their former employer.
What can an employer do if an employee breaches their post-termination restrictions or restrictive covenants?
If an employee breaches their post-termination restrictions or restrictive covenants, then their former employer may be able to bring a claim against them for breach of contract. This could include seeking an injunction, which would be a court order restraining them from committing the breach (e.g. taking up employment with a competing employer).
Is a 6-month restrictive covenant enforceable? Is a 12-month restrictive covenant enforceable?
Potentially, yes, although the longer a restrictive covenant is, the less likely it is to be enforceable. The test is whether the restrictive covenant does no more than necessary to protect the employer’s legitimate business interests. 12-month restrictions can be and have been enforced, where the court has found that to be the case.
Can an employee be required to take holiday during garden leave?
Yes. Most employment contracts will explicitly provide for this, but even if an employment contract is silent the employer has a statutory right to require an employee to take holiday by giving them sufficient notice.

Employee competition, post-termination restrictions and restrictive covenants Specialists

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Employee competition, post-termination restrictions and restrictive covenants solicitors in...

London
Ickenham
Gerrards Cross
Thame

Parking

Ample parking is available through pay and display means on public roads, as well as additional parking situated just across the street beside the Ickenham library.

Parking
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Disabled access to our offices is available.

Parking
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