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Home Solutions Employment Restrictive Covenants in Employment Contracts

Restrictive Covenants in Employment Contracts

Our employment solicitors advise businesses on restrictive covenants in employment contracts to protect confidential information and business interests.

Restrictive covenants are clauses in employment contracts designed to protect a business’s confidential information, client relationships, and key personnel when employees leave. Our employment solicitors help employers draft covenants that are effective, enforceable, and tailored to business needs.

Types of Restrictive Covenants

Common restrictive covenants include:

  • Non-Compete Clauses: Prevent an employee from working for a competitor for a specified period after leaving the company.
  • Non-Solicitation Clauses: Stop former employees from approaching or doing business with your clients or customers.
  • Non-Poaching Clauses: Prevent the employee from recruiting or encouraging colleagues to leave the business.
  • Confidentiality Clauses: Protect sensitive business information, trade secrets, or intellectual property during and after employment.

Our employment law experts are here to help you

For an initial consultation, call our employment solicitors on 0330 107 0106 or request a free call back.

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How We Help Employers with Restrictive Covenants

Restrictive Covenants in Employment Contracts

At IMD Corporate, we understand the challenges businesses face when drafting and enforcing restrictive covenants in employment contracts while ensuring they remain compliant with evolving employment law.

We assist employers with:

  • Drafting restrictive covenants that are legally compliant and commercially practical
  • Reviewing existing contracts to ensure clauses are enforceable and appropriately tailored
  • Advising on scope, duration, and application to different employee roles
  • Supporting enforcement strategy when a former employee breaches a covenant

Our approach ensures your business is protected without overreaching, reducing the risk that a tribunal or court will find the covenant unenforceable.

Drafting for Enforceability

While it is relatively straightforward to include a restrictive covenant in a contract, the real challenge is ensuring it is enforceable. In the UK, the starting point is that such clauses are generally unenforceable unless the employer can demonstrate they are necessary to:

  • Protect confidential business information
  • Preserve key client relationships, where a breach would cause business harm
  • Retain trained or skilled staff critical to operations

Additionally, the clause should be reasonable in scope, usually including:

  • Duration: The period during which restrictions apply must be proportionate.
  • Geographical area: The area covered must reflect the employee’s role and actual business exposure.

It is therefore not advisable to use a standard clause for all employees, as not every employee will have access to confidential information, key clients, or sensitive knowledge in the same way. Tailoring the covenant ensures that it is more likely to be enforceable and defensible in court.

If you need to implement a restrictive covenant call 0330 107 0106 or request a free call back to speak with our employment lawyers.

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Frequently Asked Questions

How can IMD Corporate help enforce a covenant?

We advise on strategy, review evidence of breach, and guide employers through the legal steps to enforce the covenant while remaining compliant with UK employment law.

What makes a covenant unreasonable?

Clauses that are excessively long and general, cover too wide a geographic area, or apply to employees without sensitive knowledge are more likely to be unenforceable.

Can we use the same clause for every employee?

It is not recommended. Clauses should be tailored to the employee’s responsibilities and exposure to confidential information or key clients.

Are restrictive covenants enforceable against all employees?

Enforceability depends on the employee’s role, access to confidential information, client relationships, and whether the restrictions are reasonable in scope and duration.

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