Features & Analysis

Restrictive covenants: the fail-safe for protecting business interests

With figures from the Office for National Statistics (ONS) this year showing that the number of people on the payroll has reached a record 29.2 million, 120,000 above pre-pandemic levels, Laura Kearsley, partner and solicitor specialising in employment law at Nelsons, discusses why it’s never been more important for employers to protect their businesses by having the correct paperwork in place, such as restrictive covenants.

Enhanced protection

Restrictive covenants, also referred to as post-terminations restrictions, protect a business’ important, sensitive or invaluable information from being used by its employees after they have ended their employment.

The courts will only imply a minimal amount of protection for the employer into an employment contract, but including specific restrictive covenant clauses in the contract can provide the business with enhanced protection during and after the worker’s employment.

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