Restrictive Covenants and Confidentiality Agreements both have the capacity to protect the legitimate business interests of employers and to safeguard confidential information.

Restrictive Covenants

A restrictive covenant is typically a clause in a contract which prohibits ex-employees from doing specific acts within a certain period of time after leaving the business. If the restrictive covenant that your employer seeks to enforce is determined to be unreasonable by the tribunal, it may well be held to be unenforceable.

In order for such a restriction to be enforceable, it must be:

1. Designed to protect the company’s legitimate business interests; and
2. Extend no further than is reasonably necessary to protect those interests.

There are several types of restrictive covenants which an employer can include in their employees’ contracts of employment (or more rarely in a staff handbook). These include:

• Non-poaching: This restricts employees from approaching their former colleagues and encouraging them to leave their employer;

• Non-solicitation: This prevents employees from soliciting/enticing the business of clients/customers away from their former employer;

• Non-dealing: this restricts employees from dealing with former clients/customers in a competitive fashion, regardless of which party approached the other;

• Non-competition: This restricts employees from competing with their former employer for a period of time and can include measures to stop employees from setting up their own, rival businesses; and

• Anti-Team Move Restrictions: These clauses can restrict two or more employees from leaving an employer during a similar timeframe to join a competitor or set up their own, rival business.

Confidentiality Agreements

Also known as non-disclosure agreements (NDAs), confidentiality agreements are contracts that also help to protect sensitive and confidential information of an employer.  These agreements prohibit employees from disclosing or using confidential information for any unauthorised purposes. These confidentiality agreements will only be enforceable if, as with restrictive covenants they are reasonable and properly drafted, but also specifically if they do not go against any public policies.

Should an employee breach any of these agreements, the employer can then take legal action to seek remedies such as injunctions or damages. Here at Anthony Gold Solicitors, we have experience in drafting both and can advise you on your options.

Contact us today by calling at 020 7940 3907 or emailing us at emp@anthonygold.co.uk to explore how we can tailor our services to your business’s specific needs. Let us be your steadfast partner in navigating the complex terrain of restrictive covenants and confidentiality agreements. Together, we’ll build a robust legal foundation for your continued success and growth.