Restrictive Covenants in Employment Contracts
Employers are entitled to protect trade secrets, confidential information, customer connections and the stability of their workforce from unfair competition from former employees and other competitors. The protection of business interests is an issue to be considered and carefully documented at the outset of the employment relationship.
It is a myth that restrictive covenants are rarely enforced, and we regularly deal with employment disputes concerning post-employment restrictions and confidential information. Properly drafted contractual clauses that address the protection of business interests in a targeted and proportionate way will be enforced by the Courts. Claims for damages for breach of such clauses will often fail to provide employers with an adequate remedy; the more effective remedy is an urgent injunction application.
An injunction is a Court Order that requires a party either to do a specified act or refrain from doing a specified act. Examples of such Court Orders may include restrictions on former employees working in certain geographical areas or dealing with certain customers for a specified period. An injunction may also require the return or destruction of important confidential information which, in the hands of a competitor, could cause serious damage to your business.
It is a very serious matter for a Court to grant an injunction. Injunction applications, by their very nature, must be dealt with urgently and require specialist knowledge of employment law, injunction law and Court procedures. Our Employment Law solicitors and Dispute Resolution solicitors are experienced in dealing with these types of employment disputes, recognising when an application for an injunction is needed and both making and defending applications for injunctions. We work together to provide an expert and seamless service to protect your business in a cost-effective and timely manner.
Learn More About Our Employment Team
Our Employment Approach
Our employment solicitors are dedicated to advising on how to achieve your business objectives in the most efficient and practical way. We pride ourselves on providing straightforward and bespoke advice tailored to your business requirements and resources.
We understand that employers need to be commercial, decisive and act calmly but quickly in sensitive employment matters.
Your work will be carried out by a qualified solicitor, who knows your business requirements best. Work is also carried out at the appropriate level, depending on the complexity, sensitivity and importance of the matter.
We work closely with our clients to ensure that we meet their expectations both in terms of their objectives and in relation to costs. We know that clarity on costs is vitally important to our clients, especially at a time when businesses are challenged by sudden and dramatic changes to economic circumstances.
As standard practice, we give our clients an estimate of the costs at the outset and provide cost updates on a regular basis.
Our Restrictive Covenants in Employment Contracts Experience
- Acting for a firm of accountants to injunct a former employee who had breached non-compete, non-solicitation and non-dealing clauses in an employment contract, including issuing a High Court claim for injunctive relief and negotiating a suitable settlement with undertakings, damages and costs on behalf of the client.
- Obtaining injunctive relief against a former employee in respect of misuse of confidential information and breach of a non-solicitation clause and non-compete clause.
- Supporting a wholesaler employer in an application for an injunction to prevent a former employee acting in breach of a restrictive covenant by using sensitive and confidential marketing information after joining a competitor employer.
FAQs
What is a restrictive covenant?
A restrictive covenant is a contractual term included in a contract of employment (or sometimes a deed of restriction) intended to restrict an employee’s competitive activities after the employment has ended. Restrictive covenants usually seek to restrict a former employee from working with a competing business, or from soliciting away from the original employer customers or employees. Such restrictions are usually limited for a period of time, for example, 6 months.
What is a breach of restrictive covenant?
A breach of restrictive covenant occurs where an employee leaves employment and seeks to compete with a former employer in contravention of the restrictive covenants included in the employee’s former contract of employment. Breaching the restrictive covenant in this way is a breach of contract by the employee and the employee can be liable for loss caused by the breach. A new employer may also be liable for damage suffered for inducing the breach of contract.
How can I enforce a restrictive covenant?
The most effective enforcement action in relation to restrictive covenants is for the wronged employer to seek an urgent injunction from the Court. An injunction is a Court Order compelling an employee (and possibly a new employer) to comply with the terms of the restrictive covenant included in the contract of employment. Breach of the Court Order would be a contempt of court potentially punishable by imprisonment.
An injunction is a discretionary and interim remedy made to preserve the status quo between the parties until there can be a full trial of the issues. In practice, the granting of the injunction will deal with the dispute in its entirety as where the application is successful the wronged employer benefits from the restrictions on the employee.
Is a restrictive covenant enforceable?
It is a myth that restrictive covenants in contracts of employment contracts are unenforceable. Such restrictions are enforceable where they are carefully drafted, tailored to the circumstances and go no further than is necessary for the purposes of protecting the legitimate business interests of the employer.
There are a number of grounds on which an employee can challenge enforceability. These might include that the restrictions were not properly introduced as a term of employment or that the restrictions are excessive because, for example, the period of restriction is too long, or the geographical area of restriction is excessive. Employers seeking to introduce restrictive covenants into contracts of employment should seek advice on how to effectively and lawfully do so.
Why Work With Our Employment Team?
Our award-winning employment team offers a service that combines specialist expertise with a proactive and commercially focused approach.
- Recognised Excellence - Our employment solicitors are ranked and highly recommended in The Legal 500, reflecting the strength of our legal knowledge and the quality of service we deliver. We were also named “Employment Team of the Year” at the Manchester Legal Awards 2024, underlining our commitment to excellence.
- Specialist, Partner-Led Advice - Every client benefits from a partner-led service. Your matter will be handled by a qualified employment solicitor who understands your business, industry pressures, and objectives. We tailor our advice to your needs, considering the complexity, sensitivity, and commercial impact of each matter.
- Dispute Resolution Expertise - We have extensive experience acting for employers in a wide range of disputes, including unfair dismissal, constructive dismissal, discrimination, and whistleblowing claims. Whether defending a claim in the Employment Tribunal or negotiating a favourable settlement, we protect your interests while focusing on speed, efficiency, and reputational risk.
- Strategic, Commercial Solutions - Employment issues can affect more than just the bottom line, they can disrupt morale, reputation, and leadership focus. We take a practical and strategic approach, helping you resolve disputes efficiently while safeguarding your commercial interests.
- Transparent, Cost-Conscious Service - We understand that clarity on fees is just as important as legal advice. From the outset, we provide clear and transparent cost estimates and keep you informed throughout. We tailor our work to the appropriate level, ensuring value without compromising on quality.
- Extensive Employer Experience - With years of experience acting for employers across a wide range of sectors, we offer fast, effective advice grounded in a deep understanding of your business and legal risk profile. From HR advisory support to tribunal defence, we are trusted partners to in-house teams and business owners alike.
- Accessible and Responsive - Thanks to our unique structure and firm culture, our team remains genuinely accessible and responsive. We prioritise clear communication, same-day responses, and practical guidance that enables confident decision-making.
Testimonials
Phil Davies - General Counsel and Compliance Director, TATA Chemicals Europe
I’ve worked with Myerson for many years, primarily on employment matters. I trust them to give me straightforward, pragmatic advice; not just options, but a steer on what to do. That’s what I need as a GC. They’re a credible alternative to larger firms when the balance of cost, quality and responsiveness really matters.
Vetted Limited t/a Checkatrade (UK)
I found Myerson to be flexible, with a good understanding of risk and when to take it. They also asked the right questions.
Mr. Heald
The service was excellent. Vicki was not only very professional, but timely in her responses and understanding of key timelines. I would definitely use Myerson again.
Michelle Hickman - HR Manager, Royal Exchange Theatre
Myerson were quick to respond to our initial enquiry and once engaged, dealt with our business swiftly. Charlotte and the team were attentive and friendly, while maintaining a strong sense of professionalism. We were very impressed by their high level of customer service, and their support gave us security and confidence throughout their engagement. We recommend Myerson and will definitely engage them again.
Mr Brown
Anjali was very helpful and proactive in resolving my situation. She guided me through the process and achieved a great outcome. Always professional and always responsive!
Legal 500
Joanne Henderson provides ‘a first-class service' to businesses across a wide range of sectors and is also seasoned in the Employment Tribunal, and the ’very commercial' Charlotte Gilbert, who advises employers on restructurings and TUPE issues. Gilbert is also experienced in discrimination and whistleblowing claims in the Employment Tribunal.
Anon
The support team manage our expectations seamlessly, meaning we can speak to any of the team, and know that they will be aware of any ongoing enquiries. Particular mention and thanks to Vicki, who has supported us most recently, and made it easier for us to make decisions with her pragmatic advice. I personally feel I am learning from Myerson with each interaction. Super-happy with the service, thank you!
Legal 500
Very knowledgeable and the constant contact and keeping you informed sets them above their competition.
Legal 500
The firm provides a customer focus service. They provide general employment law updates and advice into our business on a tailored basis, and provide specific advice to a range of circumstances.
Legal 500
The personal relationship and having a key contact at the firm. Not only do you have a key contact per department, but also at the firm overall. They also are a integral part of the community, holding events and being invited to these as part of networking is not only fun but also worthwhile.
Legal 500
Myerson’s is small enough to be able to form personal relationships with the solicitors, yet large enough that they can provide an excellent and knowledgeable service. They have good relationships with Counsel in different areas and are able to recommend individuals for cases.
Anon
Excellent experience end to end I recently used Myerson Solicitors for assisting with my exit from the business and Charlotte’s advice, knowledge and support was great from start to finish. fully recommend.
Legal 500
The team were exceptional in understanding what was a complex matter, they utilised their knowledge of the law and technologies to support the case and ultimately their collaborative effort led to a successful result.
Anon
Excellent support. I turned to Vicki for support with an employment matter. Vicki was always clear, concise and incredibly communicative. She made the entire process easy to understand and much less stressful to navigate. Couldn’t recommend her enough.
Legal 500
Joanne Evans is extremely pleasant, accessible and people friendly, but also with significant expertise and underlying grit.
Legal 500
Myerson has a strong employment team with long-established clients and a great reputation. Their lawyers are approachable and pragmatic, and there is a consistently high level of advice given across the team
Greg McMahon, Mitchells & Butlers Plc
As always, fantastic support and crystal clear, constructive and eminently sensible advice. A joy to work with you!
Legal 500
Employment specialist Joanne Evans has ’significant expertise and underlying grit' with significant experience in large-scale redundancies, collective consultations, trade union disputes, corporate support, and advice to senior individuals.
Legal 500
The team at Myerson are incredible. They are available when needed urgently and I never have to go over old ground with anyone when progressing with cases. Their people are knowledgeable without being overwhelming, and explain everything clearly. They understand that we are not experts, so the advice is tailored to our needs and delivered in such a way that we can then make informed decisions.
Legal 500
Joanne Henderson has been invaluable in her advice and guidance to our organisation. She provides a first-class service. She is warm, personable and professional, and she is not only an expert in her field but also has a very pragmatic and thoughtful approach to her advice, which is particularly valuable.
Legal 500
Jack Latham truly cares for his clients and the outcome, he is very professional, and has excellent knowledge of the law and legal systems.
Legal 500
Charlotte Gilbert is very commercial and understands senior staff complex matters very well. She is happy to hear your thoughts too, and the advice is then very tailored to your needs and ready for implementation rather than just legal opinion.
Legal 500
Excellent knowledge with a really pragmatic approach, discusses options with pros and cons and helps plan strategies to mitigate risks. The company has a really team-oriented approach and there is no hierarchical nature at all. The team are clearly loyal to the firm and the firm is committed to inclusiveness.
Chambers UK
Myerson has a strong employment team that is recognised for its work for household-name companies. The team offers advice to clients on matters including industrial relations, redundancies and senior executive terminations. The team also has further strength in defending employers before employment tribunals in relation to claims such as whistle-blowing and unfair dismissal.
Chambers UK
Myerson is very knowledgeable, clear and proactive with ideas and recommendations. I'm very happy with the service provided. My case was handled very effectively and efficiently.
Chambers UK
Myerson gives me practical, no-nonsense advice that's tailored to what I'm looking for. They don't deal in black and white solutions, knowing when they need to find the grey.
Chambers UK
Myerson offers in-depth knowledge, informed advice, empathy and great support. Their service is second to none; I really don't know how they could improve. Their awareness of the market is first-rate.
Chambers UK
The Myerson team are firmly committed to achieving commercial results for clients with the best outcomes. It is a firm that prides itself on having the finger on the pulse of every case.
Chambers UK
Their advice is always carefully curated, thoughtful and presented in a clear format, which enables us to easily make decisions on our actions. They're available when needed, even at short notice.
Meet Our Employment Solicitors
Home-grown or recruited from national, regional or City firms. Our employment lawyers are experts in their fields and respected by their peers.
Charlotte Gilbert
Charlotte is the Head of Myerson HR and a Partner in our Employment Team
Contact Our Experts
You can contact our lawyers below if you have any more questions or want more information:
0161 941 4000
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