RESTRICTIVE COVENENTS

RESTRICTIVE COVENENTS

HERE  is a link to a recent Supreme Judgment, which contains a useful exposition on the law of restrictive covenants in employment contracts.  The Court overturned the Court of Appeal’s decision, severing part of the covenant it considered to be unlawful and allowing the remainder to be enforced via injunctive relief.

There is no guarantee that this would happen in all cases.  It is important to bear in mind that restrictive covenants are prima facie unlawful; they need to be justified with reference to the employer’s legitimate commercial interests. 

It is therefore equally important to ensure that if you wish to use restrictive covenants, that they are drafted by a lawyer who understands your business.