Restrictive covenant

Definition: 

A clause in the contract of an employee which serves to restrict the activities of that employee during and after their employment has ended with regard to approaching competitors, working for competitors or soliciting the customers of the employer. Restrictive covenants may be legal but will only be enforceable if they are deemed to be reasonable, (i.e. provided they do not interfere with an employee's freedom to work for others over and above what is necessary to adequately protect the employer's legitimate business interests).

Back to previous page