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A business has to consider its requirements before recruiting new personnel. The restrictive covenants have to be drafted carefully if the business wishes to rely on them.

In relation to onerous non-competition covenants, one way to maximize enforceability is by reference to a geographical area around the business, or by reference to specific competitive businesses.

If the employer terminates in breach of contract by giving short or no notice of termination (called wrongful dismissal), they cannot then rely on the contract to enforce the restrictive covenants. If the employer makes a payment in lieu of notice it will be in breach of contract unless there is an express written term granting the employer a right to pay in lieu of notice.

Contact us now on 020 3878 8700 about drafting or enforcing restrictive covenants.  Or revert to the key facts page about restrictive covenants. For other legal topics you can access our law library.

Restrictive covenants areas

Restrictive covenants – employees’ position

Individuals should be able to make a living by working in the sector in which they have developed a skill set and are experienced. Non-competition covenants are particularly onerous and are much less likely to be enforced against an ex-employee, as compared to non-dealing and non-solicitation covenants. It is best for employees to address restrictive […]

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Restrictive covenants – employers’ considerations

A business has to consider its requirements before recruiting new personnel. The restrictive covenants have to be drafted carefully if the business wishes to rely on them. In relation to onerous non-competition covenants, one way to maximize enforceability is by reference to a geographical area around the business, or by reference to specific competitive businesses. […]

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