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

Eric Wright Charitable Trust unveils six-year charitable giving strategy Previous funded project supporting young people

Eric Wright Charitable Trust unveils six-year charitable giving strategy

21 Jan 2026

2

IN4 Group acquires Midlands apprenticeship provider ATL Mo Isap, founder and CEO of IN4 Group; Andy Beaden, co-founder and Chairman of IN4 Group; and the founders of GMP Recruitment James Cronin and Mike Pincott.

IN4 Group acquires Midlands apprenticeship provider ATL

21 Jan 2026

3

‘Dithering’ on defence spending puts thousands of jobs at risk, union warns Typhoon production Warton

‘Dithering’ on defence spending puts thousands of jobs at risk, union warns

20 Jan 2026

4

Renewables blow as large-scale Irish Sea windfarm plan is scrapped EnBW logo windfarm

Renewables blow as large-scale Irish Sea windfarm plan is scrapped

20 Jan 2026

5

21 roles available as Leyland Trucks launches 2026 apprenticeship recruitment Leyland Trucks tooling academy

21 roles available as Leyland Trucks launches 2026 apprenticeship recruitment

20 Jan 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
January / February 2026 - LBV Issue 126 Magazine Launch Event
Porsche Preston1200x630
Networking
22 Jan 2026

January / February 2026 - LBV Issue 126 Magazine Launch Event

Porsche Preston, Preston, PR2 1QJ

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Employment Rights Act Update for Businesses: What Employers Need to Know for 2026
Employment Rights Act Update for Businesses.png.png
LBV Hub Webinar
27 Jan 2026 - 27 Jan 2026

Employment Rights Act Update for Businesses: What Employers Need to Know for 2026

Online via Zoom, Preston, PR5 6AW

09:30 - 10:30

The Marketing Meetup: Lancashire (January)
LBV Hub Networking
27 Jan 2026

The Marketing Meetup: Lancashire (January)

Six Connections, Slater Terrace, Burnley, BB11 4SA

18:00 - 20:00

Chamber Breakfast – February
Logo.jpg.jpg
LBV Hub Networking
03 Feb 2026 - 03 Feb 2026

Chamber Breakfast – February

The Olive Branch, Lancaster, LA1 4XQ

08:00 - 10:00

Business Breakfast Networking Event
LBV Hub Networking
04 Feb 2026 - 04 Feb 2026

Business Breakfast Networking Event

Media Factory, University of Lancashire, Preston, PR1 2HE

08:00 - 10:30

E-commerce in 2026: From stores to systems
PTC banner Feb 26.jpg.jpg
LBV Hub Networking
10 Feb 2026 - 10 Feb 2026

E-commerce in 2026: From stores to systems

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Degree apprenticeship information sessions for businesses
student centre entrance.jfif.jpg
LBV Hub Webinar
10 Feb 2026 - 13 Feb 2026

Degree apprenticeship information sessions for businesses

University of Lancashire, Virtual event, -

10:00 - 09:30

Future Forward Business and Skills Summit
Future Forward Business & Skills Summit
LBV Hub Networking
20 Feb 2026

Future Forward Business and Skills Summit

Lancashire Energy HQ , Blackpool, FY4 2QS

08:00 - 11:00

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2026 - 27 Dec 2025

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Payroll Update 2026 Samlesbury Hall
payroll.jpg.jpg
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Payroll Update 2026 Samlesbury Hall

Samlesbury Hall, Preston, PR5 0UP

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin