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Post Termination Restrictive Covenants
Employment and consultancy contracts often include post-termination restrictions - also known as restrictive covenants. These clauses are designed to limit an individual’s professional activities after leaving a business. Common restrictions include preventing the former employee or consultant from: working for a competitor, soliciting or dealing with former clients, attempting to win business from previous contacts, and poaching or recruiting former colleagues.
Employers use restrictive covenants to protect their business interests, sensitive information, and client relationships after a key employee or consultant departs.
However, from the employee’s perspective, these clauses can be seen as limiting their freedom to work, network, and continue their career. UK employment law recognises the conflict between protecting business interests and allowing individuals to earn a living. As such, the enforceability of restrictive covenants is assessed on a case-by-case basis, considering factors such as reasonableness, duration, and scope.
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CLICK HERE TO GET IN TOUCH WITH USOur experienced dispute resolution solicitors specialise in advising on restrictive covenants for both employers and employees. We are recognised for delivering proactive, strategic, and commercial legal advice that helps clients resolve restrictive covenant disputes efficiently and on favourable terms.
Whether you're a business looking to protect your interests after a key employee's departure or a senior executive facing a claim, we provide clear, pragmatic guidance tailored to your needs. Our team is skilled in early dispute resolution strategies and, when necessary, we act swiftly to pursue or defend injunctions—a common legal remedy in restrictive covenant cases.
We regularly represent clients in the financial services, technology, and manufacturing sectors, and are known for our ability to handle complex litigation with confidence and determination when disputes escalate.
Our cases
- Advising a large group of independent financial advisors on restrictive covenants as they transition from one financial services company/network to another.
- Securing a successful outcome, without court proceedings, for a former consultant in a dispute concerning copyright and confidential information said to have been obtained unlawfully from a competitor who was a larger consultancy.
- Defending new employer of an individual who is accused of infringing database rights and misusing confidential information.
- Negotiating an agreement to facilitate the employment by our client of the ex-director of a competing business.
- Advising numerous large corporate entities on their strategic options in respect of the misuse of confidential information and breach of restrictive covenants across many sectors.
FAQs
- Are there different types of restrictive covenants?
- Are restrictive covenants enforceable?
- What makes a restrictive covenant reasonable?
- Can I negotiate restrictive covenants I previously agreed to?
- What if an ex-employee ignores a restrictive covenant?
- Can you avoid a dispute if you are hiring from a competitor?
Nathan Talbott
Nathan is head of our tax and commercial litigation teams, dealing with a wide range of commercial and contractual disputes.