header-logo header-logo

Restrictive covenants

Bruce Gardiner & Ming Yee Shiu present a two-part practical guide to enforcing or resisting covenants

* * * * * *

When a client is seeking advice about restrictive covenants, time is often in short supply. An ex-employee may be poaching customers and his former employer fears a catastrophic effect on his business. Or an ex-employee may have started a new business and fears his former employer may be threatening to obtain an injunction that could close his business down. In both these situations, the client needs help, and needs help fast. This two-part article sets out a 10-point checklist to use when there's no time for detailed legal research.

Is the covenant a contractual term?

This fundamental question is often overlooked. If the restrictive covenant is not a term of the employment contract, then it will obviously not be enforced by an injunction. There are several situations where the ex-employer's understanding of the contractual position may not be the true position. These can be broadly divided into two situations.

      

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Quinn Emanuel—James McSweeney

Quinn Emanuel—James McSweeney

London promotion underscores firm’s investment in white collar and investigations

Ward Hadaway—Louise Miller

Ward Hadaway—Louise Miller

Private client team strengthened by partner appointment

NLJ Career Profile: Kate Gaskell, Flex Legal

NLJ Career Profile: Kate Gaskell, Flex Legal

Kate Gaskell, CEO of Flex Legal, reflects on chasing her childhood dreams underscores the importance of welcoming those from all backgrounds into the profession

NEWS
Overcrowded prisons, mental health hospitals and immigration centres are failing to meet international and domestic human rights standards, the National Preventive Mechanism (NPM) has warned
Two speedier and more streamlined qualification routes have been launched for probate and conveyancing professionals
Workplace stress was a contributing factor in almost one in eight cases before the employment tribunal last year, indicating its endemic grip on the UK workplace
Professor Dominic Regan of City Law School highlights a turbulent end to 2025 in the civil courts, from the looming appeal in Mazur to judicial frustration with ever-expanding bundles, in his final NLJ 'The insider' column of the year
Antonia Glover of Quinn Emanuel outlines sweeping transparency reforms following the work of the Transparency and Open Justice Board in this week's NLJ
back-to-top-scroll