Restrictive covenants

Overview

Caroline Carter and Daisy Jones, Ashurst Last Modified  10 June 2013

In order to protect an employer's commercial interests, it is often commercially desirable to impose certain restrictions on an employee which will apply following the termination of the employment relationship. Employees may have knowledge of sensitive information in relation to their employer's business strategy, customer and/or supplier profile and pricing which they could use post-termination for their own benefit or for the benefit of a competitor. Accordingly, employment contracts will often contain specific restrictions to protect the employer's business interests post-termination.