It is usual for employers to insert clauses (especially into senior employees’ contracts) which seek to restrict an ex-employee’s conduct post-termination. It is also, however, becoming more and more common for employers to put these into the contracts of junior employees. But what are they?
We asked our legal expert Philip Landau to explain…
“The types of post termination restrictive covenants which you may find in your employment contract are:
In order to be enforceable, the restrictive covenants will need to prevent you from one of the above activities for a set period of time after termination of your employment (usually 6, but sometimes 3 or 12 months).
Whether such clauses are actually enforceable against you will depend upon the particular circumstances of the case. However, the following principles will usually be taken into account:
If you do have restrictive covenants in your contract, your options post-termination can be severely limited. This could leave you unable to start work with a new employer for the period of time set out in the agreement. This is usually six months but can sometimes be for a period of up to 12 months.
You may decide to ignore the restrictions when you leave and go and work for the employer of your choice, and taking your clients and contacts with you. You would, however, run the risk of your old employer issuing legal proceedings against you to enforce the restrictive covenants. They could even have grounds for seeking an injunction restraining both you and your new employer from being in breach of the covenant.
Such applications are rare, but you should nevertheless not recklessly breach your covenants without first taking professional advice. It could otherwise prove very costly.”
Jobsite have partnered with specialist employment law solicitor Philip Landau, to bring you expert advice on your rights in all key areas of your working life. As a Jobsite user you are also entitled to receive a free initial consultation on all employment law issues from Philip. Philip can help with a number of legal problems; perhaps you feel your employer isn’t following their legal responsibilities, you believe you have been dismissed unfairly or you are unsure about clauses in your contract. Once he knows your specific situation he can let you know what your rights are and what action you can take. To get in touch with Philip, click the link below and he will contact you to discuss your situation in more detail. Philip Landau is a solicitor and partner, specialising in employment law, in the London legal firm Landau Zeffertt Weir.
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