Basic Employment Agreement with Restrictive Covenants

Basic Employment Contract with Restrictive Covenants


This Basic Employment Contract contains detailed restrictive covenants, particularly in relation to non-solicitation and non-competition.

This employment contract has a General Data Protection Regulation (GDPR)-compliant data processing clause. After 25 May 2018, employers must use this clause, as employers will not be able to rely on the existing generic consent clauses.

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 is compliant with both the Employment Rights Act 1996 and Employment Act 2002, and contains the following clauses as per the requirements of section 1 of Employment Right Act 1996:

1. General
2. Duties and Job Title
3. Date of Commencement/Continuous Employment
4. Place of Work
5. Hours of Work
6. Remuneration
7. Holidays
8. Sickness Absence
9. Pension
10. Non-Compulsory Retirement
11. Confidential Information
12. Exclusivity of Service
13. Collective Agreements
14. Grievance Procedure
15. Disciplinary Procedure
16. Restrictive Covenants
17. Data Protection
18. Changes to Terms and Conditions of Employment
19. Severability
20. Governing Law and Jurisdiction Schedule: Pre-termination and Post-termination Restrictions.

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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