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Sales Employment Contracts with Restrictive Covenants

April 2014
Sales Rep And Sales Managers Employment Contracts Now Include Enhanced Restrictive Covenants

Our Sales Representative Employment Contract, Sales Manager Employment Contract (Commission Structure) and Sales Manager Employment Contract No Car With PILON have all been updated to include a detailed schedule of restrictive covenants. This schedule contains the following three possible restrictive covenants;

• Non-competition: provides that for a period of time after termination of employment the employee will not compete with the company’s business.
• Non-solicitation: provides 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).
• Non-solicitation of employees: provides that the employee can’t poach employees of the company.

It is important that restrictive covenants are no wider than is necessary to protect your “legitimate business interests”, otherwise they may be unenforceable. The employer must consider each restrictive covenant carefully, and remove any that are not relevant to the particular business and to the employee in question. For those remaining the employer must only insert time limits and geographical limits that are appropriate and reasonable to the nature of the business.

A schedule tailored to match the particular employee is more likely to be deemed reasonable and therefore more likely to be enforceable. These employment contracts also provide that the employee is contracted to show a signed copy of the Restrictive Covenants Schedule to any future employers so that those prospective employers are fully aware of the contractually agreed limitations on "poaching" customers, transactions and staff.

New Fixed Term Shop Assistant Employment Contract

Our Retail Assistant Employment Contract has now been joined by a new Retail Assistant Fixed Term Employment Contract. As shop assistants are often employed on a temporary or fixed term basis this contract has been tailored accordingly for ease of use.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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