COVENANTS (POST EMPLOYMENT)

COVENANTS (POST EMPLOYMENT)

Covenants are essentially additional clauses contained within the employment contract, but relate specifically to what happens after employment has ended. They tend to be used to restrict the activities of employees who may otherwise use confidential information gained within the course of their employment for the benefit of their new employer or for their own purposes and, in doing so, may damage the business of their old employer.

While we do have standard post employment covenants within our ‘off the shelf’ employment contracts, we find in practice that most covenants need to be very specific to be enforceable. We will work with those of our clients whose businesses require post employment covenants to define appropriate clauses. Often disputes (which can be very expensive – i.e. requiring an injunction from the High Court) can be avoided by reminding employees of their post employment obligations soon after learning of their intention to resign.

Typical employment law pitfalls

Standard or poorly drafted clauses may not provide the levels of protection desired. Clauses that are too wide in scope or too unreasonable in requirement will be regarded as invalid.

Help and support

If you tell us about an employee with post employment covenants resigning, we will normally draft a letter for you informing them of your expectations & their obligations under their contract. Such letters should not be drafted by the inexperienced as a poorly worded letter could engender a breach of trust & confidence on the employee's part, entitling them to resign immediately (i.e. without working their notice) and bringing to an end all contractual terms, including the covenants.

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