Restrictive Covenants Legal Advice
Restrictive covenants prevent senior employees from working for a competitor or poaching clients when they move on. Make sure you know what you are signing up to, and give us a call if you fall foul of one. They are not always set in stone.
Restrictive Covenants Lawyers Edinburgh, Tayside, Fife, Central Scotland
Most businesses have information they consider to be an integral part their success – and infinitely valuable. Often it is important to restrict the use of this information by employees after their employment with the business has come to an end.
Senior employees with strategic information, crucial contacts and knowledge of your business are attractive to competitors looking to hire. Businesses need to protect these important business assets but also stay within the law.
An employer may seek to protect these assets using a restrictive covenant. Many employers ensure restrictive covenants are included in the employment contracts of all senior staff.
A restrictive covenant is a contractual clause which restricts an employee from certain activities for a certain period of time after leaving that employment. They may prevent the employee actively soliciting business from former contracts or customers, or even merely doing any business with them whatsoever (even if the customer sought out their services), The restrictions can also prevent a former senior employee from poaching staff they worked with closely, as well as working in competition with a competitor or on their own account.
Restrictive covenants must:
- not be in restraint of trade contrary to public policy
- only protect legitimate business interests
- not extend further than necessary to protect those interests
Furthermore the covenant must not be drafted too broadly; for example, it must be narrowly defined in terms of the geographical areas it applies to and the length of time it is to apply for. The covenant be tailored to fit the employee’s role within the business in order to ensure that it is fully enforceable.
We can help draft restrictive covenants that will ensure your business information and assets are protected. Contact Ben Thornber at Thornber Employment Law today.
Contact Thornber Employment Law – Free Initial Advice on Restrictive Covenants
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We advise clients in Fife, Lothian, Tayside and across Central Scotland. If you are looking for clear, practical help regarding restrictive covenants from a real expert, give Ben a call today on 01383 27 2000 or fill out our online enquiry form – arrange your initial free discussion about restrictive covenants or on any employment issue today.