Are there restrictive covenants in every employee contract?
While it may be tempting to automatically include them in every employee contract, restrictive covenants are not enforceable across the board.
What are the restrictions of a garden leave contract?
Provided the clause is properly drafted, the individual will remain under a contractual and fiduciary obligation not to compete in any way with the company for the duration of the garden leave. Further restrictions will prohibit contact with customers or clients and deny access to offices, etc.
Can a non dealing Covenant be enforceable by a former employer?
A non-dealing covenant not only precludes active solicitation of the former employer’s clients but also acceptance of work from the former employer’s clients – even when it is they who make the initial contact. Nonetheless, non-dealing restrictions can be enforceable.
What to do if contractor threatens restrictive covenant?
When the recruitment consultant at the agency threatens you with the restrictive covenant, just cite this article and warn that the consultant is out of line. Should the recruitment consultant threaten to sue, point out that the law is on your side.
While it may be tempting to automatically include them in every employee contract, restrictive covenants are not enforceable across the board.
Provided the clause is properly drafted, the individual will remain under a contractual and fiduciary obligation not to compete in any way with the company for the duration of the garden leave. Further restrictions will prohibit contact with customers or clients and deny access to offices, etc.
A non-dealing covenant not only precludes active solicitation of the former employer’s clients but also acceptance of work from the former employer’s clients – even when it is they who make the initial contact. Nonetheless, non-dealing restrictions can be enforceable.
Can a company stop an employee from becoming a competitor?
The crux of the matter is that you can’t stop an employee becoming a competitor. Restrictive covenants having the sole aim of preventing competition are never upheld by the court. You can, however, protect your business interests, but restrictive covenants need to be carefully drafted to ensure that they are not deemed overbearing.