If your contract includes a restrictive covenant, we can tell you if it is reasonable and enforceable At a glance
- An employer can include restrictive covenants in your contract, to protect their legitimate business interests after you leave their employment.
- A restrictive covenant cannot go further than reasonably necessary so that it becomes an unfair restraint of your trade.
- If you would like clarification of a restrictive covenant in your contract or you think you are burdened by a covenant that is unreasonable, we can give you clear, helpful advice to put you in a stronger position.
- If you’re thinking about your options after your employment ends we can advise you on what you can and cannot do.
Do you have restrictive covenants in your employment contract which seem unreasonably onerous?
It is not uncommon to find restrictions in your employment contract or other type of agreement. These restrictions mean you agree not to do certain things for a certain period of time once your employment is terminated.
However, restrictive covenants can be deemed unenforceable if they are not relevant to your position in the business. Your employer needs to be able to prove the restrictive covenant is:-
- necessary to protect their legitimate business interests; and
- for a period no longer than is necessary to protect those interests.
A restrictive covenant cannot be used as a restraint of trade. This means it cannot be a blanket ban on you working in your chosen industry for any period of time. The courts take this very seriously.
Perhaps you need advice on fully understanding the implications of a restrictive covenant in your contract before you sign. Or perhaps you are thinking of leaving and want to know whether the covenant is actually enforceable. Whatever your situation, we will examine your contract and provide a clear, helpful explanation. We are often able to prove the restrictions cannot be enforced, enabling our clients to progress their career unhindered.
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