Restrictive Covenants - what's our advice?

Restrictive Covenants - what's our advice?

11 Aug 10:00 by Ryan Cleland-Bogle



- Read the non-competes before you sign a contract or take a new position. Don’t sign a contract that is too onerous in the first place. Don’t sign a contract you don’t intend to honour.

- If you are considering leaving your employer to compete – get legal advice as to the enforceability of both the breadth and length of your restrictive covenants.

- As a rule of thumb – if you are a director of a recruitment business your restrictive covenants will be longer and more enforceable

- Understand the detail – some restrictive covenants say you may not deal with any clients/candidates/colleagues you’ve worked with in the last 12 months – some say you may not solicit – there is a difference

- DO NOT be blasé – we have seen employers injunct and successfully take teams to court who’ve flagrantly broken their restrictions. It’s expensive, emotional and it slows you down

- Do not join a business that encourages you to break your restrictions. There’s a message in that

Your period of restrictive covenants is a great opportunity to get out and and build new relationships. If you've provided a great service to your clients they will work with you again once your restrictions are over and they will respect you for honouring them.