Basic Employment Contract with Restrictive Covenants
This Basic Employment Contract contains detailed restrictive covenants, particularly in relation to non-solicitation and non-competition.
Employers must provide workers and employees with a written statement of their main terms and conditions of employment and this is often known as a Standard Form Section One Statement.
This Basic Employment Contract covers the requirements of a Standard Form Section One Statement. This contract complies with these requirements and must be provided to the employee or worker by day one of employment.
This Basic Employment Contract with Restrictive Covenants is most applicable to junior roles where an enhanced level of restriction is needed. The effect of the restrictive covenants is that they limit the employee's ability to go to a role in a different company and compete with your business, or take your staff or customers with them. Do not use this contract if these circumstances are unlikely to arise with your new employee.
In this Basic Employment Contract with Restrictive Covenants the specific restrictions are contained in a Schedule to the main agreement. The contract requires that the employee provides any prospective new employer with a signed copy of the Schedule so that they are aware of the restrictions that the employee is subject to.
The Schedule to this contract contains three possible restrictive covenants; non-competition, non-solicitation of customers and non-solicitation of employees. The non-competition clause provides that for a period of time after termination of employment the employee will not compete with the company’s business. The non-solicitation clauses provide that for a period of time after termination of employment the employee will not deal with the company’s customers (with whom the employee has had dealings) and can’t poach employees of the company.
Restrictive covenants should be no wider than is necessary to protect your “legitimate business interests”. If their scope is too wide, they may not be enforceable. Please ensure that you carefully consider each restrictive covenant, removing any that are not relevant to your particular business and to the specific employee. Ensure that time and geographical limits are appropriate and reasonable to the nature of your business.
The Pensions Act 2014 introduced a new state pension for people reaching state pension age on or after 6 April 2016, replacing the previous basic state pension and additional state pension and ending contracting out for defined-benefit schemes. This employment contract has been updated accordingly with the removal of the clause referring to the contracting out certificate.
This contract contains the following clauses:
2. Duties and Job Title
3. Date of Commencement/Continuous Employment
4. Place of Work
5. Work outside the UK
6. Hours of Work
7. Remuneration and Benefits
9. Other paid leave
11. Sickness Absence
13. Non compulsory Retirement
14. Confidential Information
15. Exclusivity of service
16. Collective agreements
17. Grievance procedure
18. Disciplinary procedure
19. Restrictive covenants
20. Data protection
21. Changes to terms and conditions of Employment
23. Governing Law
24. Right to Work in the UK
This contract is in open format. Fields should be completed where indicated.
Clauses with optional and alternative phrases
Options and alternatives appear in blue font. The way in which this document is designed ensures that it will make sense with or without the optional clauses. Tailor this contract by removing all phrases and clauses which are not relevant to your business. Once you have finished, please remember to highlight the whole document and switch the font colour to black.
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