Restrictive Covenant Clauses

This collection contains additional restrictive covenant clauses and a related letter, for use alongside employment agreements where you need to protect the business from specific competitive risks after employment ends.

When are restrictive covenant clauses typically used?

The appropriate level of restriction will depend on the employee’s seniority, responsibilities and their level of contact with customers, suppliers and other staff. Employers often use restrictive covenants to limit the extent to which an ex-employee can compete with them.

Choosing the right restrictive covenant clause

The Non-Compete Covenant Clause is intended to restrict an ex-employee from competing with the employer after employment ends, subject to appropriate limits.

The Non-Solicitation Covenant Clause is aimed at restricting contact with customers or clients. The Non-Poaching Covenant Clause is intended to restrict the poaching of staff.

What do these clauses aim to restrict?

Restrictive covenant clauses can be used to try to prevent an ex-employee from, for example, working in a specific geographical area, contacting customers or clients, or poaching staff.

Enforceability and reasonableness

Because these clauses operate as a restraint of trade, it is important to apply reasonable limitations so they have the best chance of being enforceable as a legitimate means to protect the employer’s business interests.

The collection also includes a Non-Compete Letter for use alongside the restrictive covenant clauses where appropriate.

• Non-Compete Covenant Clause
• Non-Solicitation Covenant Clause
• Non-Poaching Covenant Clause
• Non-Compete Letter

Restrictive Covenant Clauses is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.