What are Restrictive Covenants?
Restrictive covenants, also known as post-termination restrictions or non-compete clauses, are terms in employment contracts or other agreements which seek to restrict an individual’s ability to compete with their employer’s business once they have left that employment.
The Employment Law specialists at Banner Jones are able to advise you on any issue that may arise as a result of restrictive covenants in a employment contract, shareholder agreement, partnership agreement, settlement agreement, business/share sale agreement or consultancy agreement.
The law relating to restrictive covenants is complex and ever changing, whilst the consequences of breaching a valid restrictive covenant can be harsh and expensive, with employers having the ability to seek injunctions against former employees, as well as damages for any loss they incur as a result of any breach of an enforceable covenant. Having said that, in order to obtain an injunction or damages, an employer must show that they have a legitimate business interest to protect and that the restriction goes no further than necessary to give them that protection.
As a general rule, non-competition clauses that prevent an employee from competing with their former employer’s business are unenforceable because they are viewed as unlawful restraints of trade, whilst non-solicitation or non-dealing clauses are allowed as they are designed to go no further than reasonably necessary to protect the employer’s legitimate business interests. However, this varies from one sector and industry to another and one role to another. You should therefore seek expert legal advice about the wording of any restrictive covenant in light of the sector or industry you work in.
We can help you understand the implications of any restrictive covenants before signing up to them, but can also help you when you are looking to leave your employment to determine whether such restrictions are likely to be enforceable in light of the limitations set out in case law.
How Can Our Employment Law Solicitors Help?
If you have an employment problem, often it is something else for consideration within your case, so it is always worth contacting an employment law solicitor and finding out for certain.
Expert Employment Law Solicitors
Our expert employment law solicitors are highly experienced and will treat each case uniquely depending on your circumstances. Our employment law specialists achieve solutions through confidential settlements and are always on hand to provide support when resolving employment law problems. We have worked on many employment law cases and each individual receives the upmost care and consideration throughout the case.
At Banner Jones we can advise you on your legal rights regarding employment law, where they relate to the following:
- Disciplinary and Grievance Matters
- Unfair Dismissal
- Redundancy Advice
- Discrimination in the Workplace
- Bullying and Harassment
- Ill Health and Disability Matters
- Family Friendly Rights
- Contracts of Employment and Policies
- Restrictive Covenants
- Employment Tribunals
- Settlement (Compromise) Agreements
- Protected Settlement Discussions
- Trade Union Representation
- Mediation
- Funding your Employment Law Case
I’m an employer looking for advice, can you help?
Yes. We do offer services for both employers and employees. Please visit our Employment Law for Businesses page for further information.
How much does an employment lawyer cost?
Costs depend on case type and complexity. Our employment law specialists offer fixed-fee initial appointments and transparent pricing to ensure you’re fully aware of costs throughout the process.
Can my employer fire me before I sign any settlement agreement?
Yes, an employer can dismiss you before a settlement agreement is signed. However, the agreement must be voluntary, and you must receive independent legal advice before it becomes legally binding. Our employment specialist solicitors can review the terms before you sign.
How long do I have to work somewhere to be protected from unfair dismissal?
In most cases, employees need two years’ continuous service to claim unfair dismissal although this is set to change in 2027. However, there are important exceptions which our unfair dismissal solicitors can advise on.
How much time do I have to bring a claim to an Employment Tribunal?
Most claims must be brought within 3 months less 1 day from the relevant act or dismissal. It is therefore crucial that early advice is sought, and employment tribunal representation is in place to help protect your position.