What is a restrictive covenant?

Tosh Polpitye

11 December 2018

What are restrictive covenants?

Restrictive covenants tend to be in most employment law contracts in one form or another and every business has information that it will consider both essential and invaluable to its operation and success. It then makes it essential that restricting the use of this information by its employees after their employment has ended vital to the protection of the business or customer contacts. Any ex-employee who has knowledge of technology, business information, customers or client information will be attractive to a competitor.

There are some terms which are implied into all employees' employment contracts which will provide a certain level of protection for employers. It is, therefore, important that an employer protects the use of this information both during employment and after the employment ends through the use of restrictive covenants.

What is a restrictive covenant in an employment contract?

This is the question I put to expert employment law solicitor Thushara Polpitye.

Transcript

What is a restrictive covenant in an employment contract? Expert solicitor Tosh Polpitye explains.

So a restrictive covenant things that you can't do either during your employment or after your employment, so that would be things like not stealing clients if you leave a company. There will be things like not stealing their staff, not stealing their suppliers, basically doing things that won't damage the business after you leave.

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