Restrictive covenants: are you protected?

Recruiting and retaining good staff is a challenge. So, it’s no surprise that your competitors will be keeping an eye on your top talent.

By Oliver McCann, employment & HR partner, head of Napthens Blackburn office.

Disputes are on the increase where employees leave to join competitors, with the former employer wanting to take action to protect its business.

An employer can agree with an employee, under the employment contract, various restrictive covenants to protect the business should the employee leave e.g. non-poaching key staff, non solicitation/non dealing with customers, non interference with suppliers – even no working for a competitor.

  • there is a legitimate business interest to protect e.g confidential information, trade connections, and
  • applied to employees who pose a risk to those interests, and
  • restrictions are no wider than necessary to give reasonable protection in terms of duration, geographical scope and who is caught by the restriction.

Planning who should be subject to restrictions/ what restrictions apply gives the employer a better chance of demonstrating that the rationale behind the restrictions is reasonable.

The best time to achieve this is at offer stage. If existing staff pose a risk to your business but have no restrictions/poorly drafted restrictions, this can be addressed. If an employee breaches restrictions post termination, options available are to seek injunctive relief to enforce restrictions and/or damages for loss of profits etc. Be vigilant. Act quickly at the first sign of any potential breach/unlawful behaviour. Take legal advice. Don’t risk everything you have built up as a business by failing to ensure staff are properly restricted.

Enjoyed this? Read more from Lancashire Business View

Latest news

1

Forbes makes Manchester move Forbes Manchester

Forbes makes Manchester move

15 Apr 2024

2

Blackpool approves plans for pair of apartment complexes New South Promenade Apartments Visuals

Blackpool approves plans for pair of apartment complexes

12 Apr 2024

3

Distinguished engineer takes senior role at Lancaster University Rebecca Lingwood

Distinguished engineer takes senior role at Lancaster University

11 Apr 2024

4

International building supplies firm to open new plant in Preston New Kerakoll Group Premises Visuals

International building supplies firm to open new plant in Preston

11 Apr 2024

5

The Windsor Framework in Layman’s Terms Windsor F.jpg.jpg

The Windsor Framework in Layman’s Terms

19 Apr 2024

Hwc 2024 Email Signature 980x120
Background image for hub sign up block

LBV Hub

Reach 50,000 members of the Lancashire business community

Post your news
Post your events
Post your offers
Company profile
Social reach
Magazine coverage
Sign-up
Events
Health and Wellbeing Conference 2024
Hwc 2024 Social Media 1200px 1
Networking
23 Apr 2024

Health and Wellbeing Conference 2024

Crow Wood Hotel, Burnley , BB12 0RT

08:30 - 13:00

Help to Grow Management Course
HTG2.png.png
LBV Hub Seminars
15 Apr 2024 - 17 Jul 2024

Help to Grow Management Course

Preston Campus , Preston , PR1 2HE

09:30 - 14:00

Business Networking in Preston- BNI Brunch
EVENT LISTING SIZING Brunch .png.png
LBV Hub Networking
19 Apr 2024

Business Networking in Preston- BNI Brunch

Samlesbury Preston Hotel, Preston New Road, Preston, PR5 0UL

09:30 - 11:00

The Pro Club
Untitled design (6).png.png
LBV Hub Networking
19 Apr 2024

The Pro Club

Fraser House, Lancaster, LA1 4XQ

09:30 - 12:30

Business Networking in Blackburn - BNI Infinity
EVENT LISTING BNI Infinity.png.png
LBV Hub Networking
19 Apr 2024

Business Networking in Blackburn - BNI Infinity

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:30 - 08:30

St Catherine’s Corporate Skydive
Corporate SkyDive.jpg.jpg
LBV Hub Fundraisers
21 Apr 2024

St Catherine’s Corporate Skydive

Black Knights Parachute Centre, Lancaster, LA2 0YD

12:00 - 16:30

Emergency First Aid at Work
Chamber Logo1.png.png
LBV Hub Seminars
23 Apr 2024

Emergency First Aid at Work

FGH Training, 3rd Floor, Storey House, White Cross Business Park, Lancaster, LA1 4XQ

09:00 - 16:00

Business Networking in Blackburn - BNI Vista
EVENT LISTING SIZING Vista.png.png
LBV Hub Networking
23 Apr 2024

Business Networking in Blackburn - BNI Vista

Hampton by Hilton, 2 Frontier Ave, Blackburn, BB1 3AL

06:45 - 08:30

HR Complete Training Programme: Equality and Diversity
Picture1.png.png
LBV Hub Webinar
23 Apr 2024

HR Complete Training Programme: Equality and Diversity

Online (Zoom)

09:30 - 11:00

Business Networking in Chorley - BNI Endeavour
EVENT LISTING SIZING Endeavour.png.png
LBV Hub Networking
23 Apr 2024

Business Networking in Chorley - BNI Endeavour

Oak Royal, Bury Lane, Chorley, PR6 8SW

06:30 - 08:30

Business Networking in Preston - BNI Diamond
EVENT LISTING BNI Diamond.png.png
LBV Hub Networking
24 Apr 2024

Business Networking in Preston - BNI Diamond

The Marriot Hotel, Garstang Road, Broughton, PR3 5JB

07:15 - 09:00

Chamber Breakfast Networking
Chamber Logo1.png.png
LBV Hub Networking
24 Apr 2024

Chamber Breakfast Networking

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv115 Online Graphic
Subscribe now

Weekly news bulletin