Effective Restrictive Covenants in Employment Contracts
A High Court decision illustrates the importance to employers of having effective restrictive covenants, appropriately drafted to an employee’s role, to protect their business. The restrictive covenant in this case stated:
“During your employment with Customer Systems (CS) and for a period of one year afterwards you undertake not to be employed directly or indirectly by any present or past customer of CS with which you have been personally involved in the course of your employment by CS.”
This checklist explains what restrictive covenants are, when they are likely to be enforceable and how they can be used in employment contracts to protect your business’ interests.