Restrictive Covenants - Remedies for breach and enforcing a restrictive covenant
- This fact card deals with the remedies for an employer if their former employee is acting in breach of a restrictive covenant.
- Prior to considering the available remedies, it is advisable of course for the employer to determine the likelihood of the restrictive covenant being deemed by a court to be enforceable, as evidently breach of a void and unenforceable covenant will have no remedy (the issue of whether or not a covenant is enforceable is dealt with at Related card Restrictive Covenants: Is the Covenant Enforceable?)
- Recourse for breach of a restrictive covenant is obtained exclusively in the civil and the available remedies are the common law remedies of
- An injunction
- Ordinary damages for breach of contract
- The equitable remedy of an ‘account of profits
- Damages, also in limited circumstances, for the hypothetical price the employee would have had to pay to buy out the restriction
- Damages against the new employer in tort for procuring a breach of contract.