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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

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