Restrictive Covenants – also known as post-termination restrictions – are designed to protect the business of your employer. Beginning with confidentiality they can cover everything from a ban on soliciting customers, poaching employees, working for a competitor and more. In doing so, these restrictions can have a serious impact on your future job prospects.
With the excitement of starting a new job many people do not pay sufficient attention to the reality that all jobs end, with most people moving on to another job with a different employer often within the same industry. Many people sign Employment Contracts, Service Agreements or Consultancy Agreements without reading, understanding or giving proper attention to the restrictive covenants lurking within. Employers may also seek to introduce restrictive covenants part way through or at the very end of employment.
Some employees do not take restrictive covenants seriously, relying on stories of people who know people who had post-termination restrictions which were never enforced. This is unwise because you are gambling with your financial well-being. Your starting point should be that restrictive covenants are enforceable and will be enforced at the first sign of trouble. If you do not take the restrictions seriously there is a good chance that your new employer (who is at risk of a claim for inducing you to breach of contract) will do and reconsider the job offer.
How can we help with Restrictive Covenant disputes?
At Jordans we can help you to assess whether the restrictions are enforceable and your options in how best to resolve the dispute and move on with your career.