Restraint of Trade Clauses (employers)

On termination of the employment contract the Employee is free to compete with the former Employer unless the Employee has agreed to an express restrictive covenant in the contract and the Employer has not breached or otherwise made the contract of employment voidable.

Generally speaking, restrictive covenants which seek to prevent former Employees from working in the same trade or profession after the termination of their employment fall into a difficult area of law. On one hand because such clauses are anticompetitive the law takes the view that they are prima facie void and therefore not enforceable, however the law also recognises that contracts freely entered into should be enforceable by the parties. The result is that the courts have taken a view that restrictive covenants are void unless the Employer can show that they are reasonable to protect its legitimate business interests.

DC Kaye & Co Solicitors can provide Employers with help in a variety of ways in relation to restrictive covenants, to cover the drafting of such clauses and advising as to their enforceability as well as assisting with actually enforcing the covenants when an employee has acted in breach.

To arrange an appointment to discuss with our specialist lawyers please contact the Employment Department secretary Viki Summers.

Telephone: 01494 862226
This website is using cookies. More details