Restrictive Covenants

Restrictive covenants amount to a form of restraint of trade, and therefore they will only be upheld as enforceable by courts if they protect a legitimate business interest. The restraint must go no further than protecting the legitimate interests of the business seeking to rely on the covenant. However it is theoretically possible for valid restrictive covenants in a shareholder agreement to be wider than those in a contract of employment. We also deal with breaches of restrictive covenants and the defence of attempts to enforce excessively harsh contractual terms.

Restraints of Trade and Non-Solicitation of Staff or Clients

Restraints of trade seek to protect the goodwill and trade secrets of the business as well as restraining post termination competitive activity by the former employee with the business. Non-solicitation of staff seeks to prevent an employee taking existing staff with them to a new place of employment. Non-solicitation of clients seeks to prevent an employee post termination of contract from contacting, dealing with or soliciting clients or customers away from the business.