Understanding restrictive covenants

Employers often include restrictive covenants in employment contracts with the aim of restricting an employee’s freedom to work for a competitor in the future.

Common examples of restrictive covenants are employment contracts including nonsolicitation clauses to limit ex-employees’ ability to approach the employer’s customers.

These clauses usually include customers with whom the ex-employee has had contact during the course of their employment and will usually cover a specific period before the termination of the employee’s contract.

Another common restrictive covenant is a noncompete clause to constrain the ex-employee from working for a competitor. Usually this type of covenant will be limited in geographical scope and apply to competitors operating within a certain radius of the employer.

To be enforceable, a restrictive covenant has to be reasonable. The employer must also have a legitimate business interest that requires protection.

These types of cases are very ‘fact-sensitive’. You must consider the particular circumstances of the case, including the industry in which the employee and employer operate.

If the employee has held a position of responsibility and has had access to important information as part of their role, their employer will also want restrict their future use of that information.

Understandably, employers will want to protect details of their customers, suppliers and business contacts. They will also want to safeguard other confidential information and ‘trade secrets’.

Price lists and client databases are examples of confidential information an employer may want to protect. Trade secrets include confidential processes specific to the employer’s business, such as designs and methodologies.

However, not all information to which an employee has access can be properly described as ‘confidential’, especially if that information can be found in the public domain.

In order to enforce restrictive covenants, proceedings are brought in the civil courts, rather than the employment tribunal. If the employer is seeking an injunction, then proceedings will be commenced in the High Court.

  • To read this feature in full and access further Lancashire business news, advice and analysis subscribe to Lancashire Business View magazine or join the LBV Hub from just £2.50 per month. Click here to subscribe now.

Enjoyed this? Read more from Rachel Harrison, Farleys

Latest news

1

Crowds turn out as Darwen’s state-of-the-art Youth Zone opens in style Darwen Youth Zone launch

Crowds turn out as Darwen’s state-of-the-art Youth Zone opens in style

24 Apr 2026

2

New appointments at fulfilmentcrowd Ben Chicken (Director of Commercial), Katie Shepherd (Director of Marketing), Paul Taylor (Managing Director), Rachel Miller (Director of Finance) and Matthew Humphreys (Director of Sales)

New appointments at fulfilmentcrowd

23 Apr 2026

3

CoolKit partners with KIA for groundbreaking light commercial vehicle article placeholder listing image

CoolKit partners with KIA for groundbreaking light commercial vehicle

23 Apr 2026

4

Lumo reveals first refurbished West Coast train The first West Coast line train by Lumo

Lumo reveals first refurbished West Coast train

22 Apr 2026

5

Multi-million pound investment in Blackpool's power network Multimillion-pound investment programme which will transform the electricity network in Blackpool

Multi-million pound investment in Blackpool's power network

21 Apr 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36 Outdoor Elements Logo1920x1008
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV128 May/June Magazine Networking Event
Canva - Mag Launch
Networking
19 May 2026

LBV128 May/June Magazine Networking Event

Colne Market Hall, Lancashire, BB8 0HS

08:30 - 10:30

Funding Summit
Funding Logo Canva Mid
Summit
17 Jun 2026 - 17 Jun 2026

Funding Summit

Village Hotel Blackpool

08:30 - 11:00

Vibe Coding: "Who owns what when no one wrote the code?"
April PTC Banner.png.png
LBV Hub Networking
28 Apr 2026 - 28 Apr 2026

Vibe Coding: "Who owns what when no one wrote the code?"

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Sales acceleration in this uncertain economic climate
Logo.jpg.jpg
LBV Hub Seminars
28 Apr 2026 - 28 Apr 2026

Sales acceleration in this uncertain economic climate

Lancaster & Morecambe College, Lancaster, LA1 2TZ

08:30 - 10:30

Manufacturing for Tomorrow Club
Example.png.png
LBV Hub Seminars
30 Apr 2026 - 30 Apr 2026

Manufacturing for Tomorrow Club

University of Lancashire, Preston, PR1 2HE

09:00 - 11:30

Dazzle & Decadence
Dazzle & Decadence TryBooking Header.png.png
LBV Hub Fundraisers
30 Apr 2026

Dazzle & Decadence

Ainsworth Jewellers, 57-59 Darwen St, Blackburn, BB2 2BW

18:00 - 20:00

Blackburn Beer and Gin Festival 2026
Blackburn Beer and Gin Festival 2026
LBV Hub Social
01 May 2026

Blackburn Beer and Gin Festival 2026

BB1 8NB

17:00 - 23:00

Society1 Open Coworking Day
LBV Hub Networking
06 May 2026 - 06 May 2026

Society1 Open Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 16:00

The AI Lab: E-commerce
LBV Hub Seminars
08 May 2026 - 08 May 2026

The AI Lab: E-commerce

Door4, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:30

Emergency First Aid at Work
LBV Hub Seminars
08 May 2026 - 08 May 2026

Emergency First Aid at Work

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

09:00 - 16:00

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin