Are my restrictive covenants are enforceable?

Restrictive covenants will only be enforceable if they protect a legitimate business interest and are viewed as reasonable. There can be disagreement between an employer and employee about this.

For example, when considering the length of a restrictive covenant, consideration needs to be given as to how long it might take a business to consolidate its client base after an employee leaves who had a close relationship with these clients.

The existence of restrictive covenants in your employment contract does not necessarily mean they are enforceable. However, it is not a call that you should get wrong as this could result in a costly and time consuming legal case against you. We have considerable experience helping our clients understand what they can and cannot do on an exit where restrictive covenants could be an issue. We are often able to negotiate a different set of restrictive covenants when an employee leaves their role that are more acceptable to both parties.

If your employer terminates your employment in breach of contract or if you are constructively dismissed, you may no longer be bound by your restrictive covenants. It is highly recommended that you take legal advice, however, to ensure that you are in a strong position to argue that this is the case.