FAQs

1. What are post-termination restrictions?

   Post-termination restrictions, also known as restrictive covenants, are obligations upon employees which apply after their employment has been terminated. If drafted correctly, they can be used to protect your business from unfair competition from former employees and ensure confidential information is not exploited by employees who no longer work for you.

2. Can I stop an employee working for a competitor?

   In some circumstances, yes. Restrictive covenants in the contract of employment or service agreement can oblige the employee to comply with certain restrictions in their future career, including not working for a competitor, for a period of time after leaving your business.

3. Are restrictive covenants enforceable?

   Restrictive covenants may be enforceable if they are carefully drafted to ensure that factors like the duration of the restriction and the geographical spread are reasonable and go no further than necessary to protect your business. Much will depend on the role of the employee and the sector in which your business operates.

4. Can I introduce restrictions into existing employees’ contracts?

   You can amend your employee’s contract of employment to add restrictive covenants but you will need to follow a particular process, following a period of consultation, in order to obtain your employee’s agreement to the changes. Restrictive covenants are often introduced when an employee is promoted to a more senior role.