Tag: restrictive covenant

Making restrictive covenants bite

How do you prevent a former employee from competing, soliciting and dealing with your clients, and from poaching your other employees? Restrictive covenants are the answer, but are also notoriously difficult to enforce because they are, as a starting point, considered to be a restraint of trade. Follow the steps below to ensure that your restrictive covenants …

Is a 12 month non-competition restrictive covenant enforceable?

Yes says the High Court in the case of Merlin Financial Consultants Ltd v Cooper! In this case, a ‘goodwill’ agreement between an employer and a financial adviser contained a restrictive covenant preventing the financial adviser from ‘competing’ with the business of the employer for 12 months post termination.  The Court found that 12 month …

A six-step guide to protect your business against breach of restrictive covenants

Breaches of employment contracts happen every day – being vigilant and making employment contracts water tight is critical.  St Albans dispute resolution solicitor Gemma Newing provides a six-step guide to protecting your business. 1. Seek legal advice at the earliest opportunity  The relationship between your employees and your customers is key to the success of …

Is an employee breaching the restrictive covenants in their employment contract and destroying your business in the process?

So what happens when an employee leaves for a competitor taking not only a database of clients, but also confidential information about the company’s products? We all think it won’t happen to us, but unfortunately the litigation team (as well as colleagues in the employment law team) see this happening quite regularly – let me …