Employment Law Specialists

Employment law restrictive covenants

A restrictive covenant in an employment contract is a clause that limits an employee’s ability to work for a competitor after leaving their current job. 

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Employment law restrictive covenants Scotland

Are restrictive covenants enforceable?

Yes, restrictive covenants are enforceable. This means that if you violate a restrictive covenant, the court can order you to stop violating it and/or pay damages to the person or entity who is harmed by your violation.

What is a restrictive covenant in an employment contract?

A restrictive covenant in an employment contract is a clause that limits an employee’s ability to work for a competitor after leaving their current job. These clauses are designed to protect the employer’s business interests by preventing the employee from taking advantage of their knowledge and experience to benefit a competitor. Restrictive covenants can be found in both non-compete and non-solicitation clauses, and they are typically enforceable if they are reasonable in scope and duration.

What are post-termination restrictive covenants?

Post-termination restrictive covenants are contractual provisions that restrict an individual’s ability to compete with their former employer following the termination of their employment. These provisions are designed to protect the employer’s business interests, and can include restrictions on things like soliciting customers, using confidential information, or starting a competing business.

You have covenants in your contract – can you negotiate out of them?

Yes, you can negotiate out of covenants in your contract. However, it is important to understand what these covenants are and how they may impact your business before doing so. Otherwise, you may be inadvertently giving up important protections or rights.

What can your former employer do if you breach your post-termination covenants?

If you breach your post-termination covenants, your former employer may take legal action against you. This could include seeking an injunction to prevent you from breaching the covenants or claiming damages for any losses suffered as a result of the breach.

Are restrictive covenants in employment contracts legally binding?

Yes, restrictive covenants in employment contracts are legally binding. This means that if an employee violates a covenant, the employer can take legal action against the employee. Restrictive covenants are often used to protect an employer’s business interests, such as trade secrets or customer relationships.

What is garden leave?

Garden leave is a period of time during which an employee is still employed by a company, but is not required to work. This leave can be used for various purposes, such as taking time off before starting a new job, or preparing for a court case.

 

 

 

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