Harper James advises ambitious UK businesses on restrictive covenants under the laws of England and Wales. These clauses protect legitimate business interests when an employee leaves, while ensuring the restriction goes no further than necessary.
Common restrictions prevent an ex-employee from working for a competitor, soliciting customers or staff, dealing with former customers, or misusing confidential information. Confidentiality obligations usually have the longest practical value. Non-compete clauses are harder to enforce because they limit a person’s ability to work. Each covenant needs a clear business justification, a defined period, and carefully chosen geographical and customer limits.
Courts assess the contract and circumstances in place when the restriction was agreed. A well-drafted clause identifies the interest being protected, such as customer connections, trade secrets or a stable workforce. Broad wording, vague definitions and restrictions that apply to an employee with no relevant access weaken enforcement. Employers should review covenants when an employee is promoted, changes role or receives new confidential information. Further guidance on employment contract protections provides useful background for that review.
Government policy has focused on limiting post-termination non-compete clauses, with proposals centred on a maximum three-month period. The legal position depends on the legislation enacted and its commencement date, so employers should check the current rules before relying on a longer restriction. Businesses should not assume that a non-compete is their only protection. Garden leave, confidentiality provisions, intellectual property clauses, customer non-solicitation terms and controls over access to data often provide a more targeted response.
When an employee resigns, the employer should preserve relevant evidence, check the contract, confirm any garden leave position and send a focused reminder of continuing obligations. If a breach occurs, urgent legal assessment is needed because an injunction application requires prompt action and strong evidence. A restrictive covenant review is also sensible before a sale, investment round or senior hire, when gaps in protection can affect due diligence and valuation.