Restrictive Covenants : Is The Covenant Enforceable?
- 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