Restrictive covenants
Clauses limiting what someone can do after they leave. Enforceable only if reasonable.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Post-termination restrictions typically cover non-competition, non-solicitation of clients, non-dealing, and non-poaching of staff, for a defined period and area.
Why it matters
They are void as a restraint of trade unless they go no further than necessary to protect a legitimate business interest. Courts do not rewrite them; an unreasonable clause simply fails.
What it looks like in practice
Narrower is stronger. A twelve-month worldwide non-compete is usually unenforceable; a six-month non-solicitation of clients the person actually dealt with usually is.
What to watch out for
Copying senior covenants into a junior contract, which makes all of them look unreasonable. And failing to update them on promotion — covenants are judged against the role when they were agreed.
Where to get proper advice
An employment solicitor. This is one area where a template is genuinely dangerous.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
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