Restrictions in your Employment Contracts
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There might be specific restrictions in your employment contract. For example, restrictions that prevent you from working for competitors or contacting your employer’s customers after your employment finishes. These restrictions are known as Restrictive Covenants.
Restrictive Covenants are put in place by your employer to protect its business. However, they are difficult to get right. The law only allows your employer to impose Restrictive Covenants that are no more than necessary to protect their legitimate business interest. If the Restrictive Covenants go any further, then a Court would find them to be unenforceable as an unlawful restraint of trade.
There are no hard rules that your employer can follow to ensure that the Restrictive Covenants are enforceable. Each case is taken by the courts on its own merits. Relevant factors include the standard practice in your industry, the geographical area in which your employer operates and whether the restrictions prevent you from earning a living after your employment finishes.
If you are concerned about the implication of Restrictive Covenants, then we shall really take the time to consider the difficulties that you face and the options available.
Ideally, this advice should be taken before you sign your employment contract. It might be possible to negotiate amendments to the Restrictive Covenants before you sign, if they are likely to be a problem in the future.
Understandably, that may not always be possible. We do often advise clients upon Restrictive Covenants after the contract has been signed, and when problems have started.
If things really do go wrong, then your employer could take action against you in the Civil Courts. We can advise you if that happens.
We have experience advising upon Restrictive Covenants in a variety of different industry sectors.
Employment Law
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