Enforcement of Restrictive Covenants
Employers often include restrictive covenants in their employment contracts to prevent outgoing employees from seeking to solicit and/or deal with their customers, suppliers or other employees after they leave the business.
A former employee with knowledge of its employer’s confidential information, customers and suppliers, may pose a significant risk if they move to a competitor or look to set up their own competing business. Restrictive covenants are designed to protect a former employer’s confidential information, customer connections and the stability of its workforce by preventing an employee from using connections or information they were made privy to during the course of their employment for the benefit of a new employer.
Enforcing Restrictive Covenants
Most disputes arise when employees move to work for competitors and, in spite of post termination restrictions in their contract, seek to solicit their former employer’s customers for the benefit of their new employer.
General contractual terms seeking to limit an employee’s activities after their employment comes to an end are considered void for being contrary to public policy and a restraint of trade. The enforceability of any restrictive covenants is therefore very much fact specific to each case.
In the event that an employee is in breach of enforceable post-termination restrictive covenants, the remedies typically available to a former employer include obtaining an injunction to prevent the ex-employee from committing any further breaches, or an award for damages in respect of the losses the employer has suffered as a result of the breaches.
Talk to Tollers
At Tollers, our employment law team are experienced in assisting former employers pursue ex-employees who are in breach of their restrictive covenants. We are able to advise on whether the restrictions upon which you seek to rely are enforceable, and, with our experience, can help you to protect your business from further damage caused by an ex-employees breach of such restrictions. Should you require further information or assistance then please get in touch or contact us on 01604 258558 or complete the form below.
