Restrictive covenants

With employees changing jobs more frequently, greater use of social media, and an increasingly challenging commercial environment, it is more important than ever for businesses to protect their technology, customer relationships and confidential information in order to remain competitive.

Setting out restrictive covenants in an employment contract can be a very effective way for businesses to safeguard confidential information. They can be used to deter an employee from competing unfairly against a former employer, soliciting the custom of an employer’s clients or prospective clients, poaching key staff, or dealing with customers and suppliers for reasonable periods of time. All too often, however, businesses use template covenants that are not appropriate for their commercial needs and which will not be upheld in court.

As Penningtons Manches Cooper acts for both senior executives and employers, we are equipped to offer a broad perspective on this area of employment law. We assist businesses at the point of potential recruitment, assessing the enforceability of the recruit’s current restrictions and/or drafting tailored covenants to meet legitimate business needs. We also provide strategic advice when an employee has removed confidential information or resigns to join a competitor. We are often instructed to take rapid action to enforce restrictive covenants.

Our solicitors work seamlessly with experts in other practice areas. For example, we regularly draw on the specialist knowledge of members of our commercial dispute resolution team who have extensive experience in High Court procedures.