Employment » Restrictive Covenants and Confidentiality

Your confidential information and customer contacts are crucial assets for the continuing success of your businesses.

You can protect them with express clauses in your employment contracts by way of:-

  • Restrictive covenants to prohibit competition, solicitation of clients and poaching of staff.
  • Gardening leave to remove an employee from the business (and contact with customers and other staff) during his or her period of notice.
  • Confidentiality clauses to prevent unauthorised disclosure or misuse of confidential information.

The expert lawyers in our Employment team can draft clauses that are appropriate to your business and employees and, most importantly, robust enough to be enforceable in the Courts.

We can also advise you on incorporating the clauses into your contracts at any stage of the employment cycle from recruitment to dismissal.

If you suspect a breach, act quickly before your business is placed at serious risk. We can review the evidence and advise you on the available options:

  • Sometimes a robustly worded Solicitors’ letter demanding undertakings is sufficient;
  • If not, injunctive relief is available to enforce covenants or to prevent competitive advantage from unlawful activity (a ‘springboard’ injunction);
  • Claim for damages or restitution, if financial loss already suffered.   

We are also highly experienced in dealing with the opposite situation where your new employee’s old employer comes after you alleging breach of restrictive covenants.

Recent Experience:

  • Helping a recruitment company when they a hired new employee from a competitor and solicited business in breach of restrictive covenants. We negotiated a commercial settlement involving a modest payment and a reduction in the restricted period from 6 months to 4 months.     
  • Acting for a technology manufacturer to reduce competitive activity from a former sales manager in the absence of restrictive covenants. Our robust correspondence achieved this objective by harrying the competitor and making it clear that their activities were being closely monitored.

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