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Restrictive Covenants : Is The Covenant Enforceable?

Key Points

  • A restrictive covenant in an employment contract prevents or restricts a former employee taking proscribed actions in his/her future employment
  • The purpose of restrictive covenants, is to protect the employer’s business by restricting the activities of its former employee.
  • Unlike Garden Leave, which applies to conduct during the employment relationship restrictive covenants apply post-termination of the employment contract 
  • This card considers the concepts of legitimate interest and reasonable scope before dealing with other miscellaneous issues relevant to the enforceability of the covenant
  • Brexit effect - unless otherwise stated, the position in relation to any EU legislation and decisions as set out in this card is as it was understood at the end of the transition period on 31st December 2020. For information on the status of EU decisions and legislation as of 31st December 2020 please see Statement on impact of Brexit on Emplaw Online content



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