Whether you're an employee facing a non-compete clause, or an employer needing one to actually hold up, we advise on what's enforceable — and what isn't.
Restrictive covenants are clauses in an employment contract, or sometimes a settlement agreement, that restrict what you can do after your employment ends. The most common types are non-compete clauses (preventing you from joining or setting up a competing business for a period), non-solicitation clauses (preventing you approaching former clients or customers), non-dealing clauses (preventing you doing business with clients even if they approach you first), and non-poaching clauses (preventing you recruiting former colleagues).
The starting point in law is that any restraint on your ability to work is void. An employer can only enforce a restrictive covenant if it protects a legitimate business interest — such as genuinely confidential information, established client connections, or the stability of the workforce — and goes no further than reasonably necessary in its scope, geography and duration to protect that interest. A covenant that is drafted too broadly, or lasts too long, is likely to be unenforceable, regardless of how it is labelled.
Courts will sometimes remove an unreasonable part of a clause, through a process known as severance, if what remains still makes sense on its own — but this cannot be used to rewrite an unreasonable covenant into a reasonable one. This means a badly drafted covenant can fail entirely, which is exactly why both employees and employers benefit from having them properly reviewed rather than assumed to apply.
If you are leaving a role, whether through resignation, redundancy, or a settlement agreement, we will review any restrictive covenants in your contract and advise you honestly on whether they are likely to be enforced. Employers sometimes rely on covenants that look intimidating on paper but would not survive a challenge. We also regularly negotiate the removal or softening of unreasonable restrictions as part of exit negotiations.
Poorly drafted covenants are often worthless when they matter most. We advise employers on drafting covenants that are properly tailored to the individual's role and genuinely protect the business, and on reviewing existing covenants after a promotion or significant change in responsibilities — since courts generally assess enforceability based on the position at the time the covenant was agreed, not the role someone later grows into. We also advise on enforcing covenants where a former employee has breached them.
Call us on 020 3058 3365 or complete the form for a free, confidential assessment, whether you are reviewing a covenant you are bound by, negotiating an exit, or drafting protections for your business.
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