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How can I prevent an employee breaching their restrictive covenants?

Employees seeking to use your confidential information, set up a rival business or poach your clients or staff can pose a serious threat to your business. Post-termination restrictions, known as restrictive covenants, are designed to prevent employees from carrying on these kinds of activities. If you are concerned that one of your employees or former employees is breaching their restrictive covenants, you may want to apply for an injunction to curb the potential damage to your business.

Injunctions are suitable in cases where allowing the employee to continue their actions would have such an adverse effect on your business that your losses could not be adequately compensated by damages awarded at trial. There are two stages to the injunction procedure. Firstly, the court will hold a hearing to decide whether to grant an interim injunction. This is a temporary measure to prohibit the employee from breaching their restrictive covenants until the matter is heard at a full hearing. At the full hearing, the court will make a permanent decision and the interim injunction may be made final.

At Vardags, we will work with you to protect your business interests, weighing up the options available to you and conducting a cost-benefit analysis to determine how best to resolve the issue.

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