Restrictive Covenants

In this article we look at the differences between the use of Restrictive Covenants in employment contracts and commercial contracts such as share purchase agreements. Background Restrictive covenants have been in the headlines recently, triggered by the government's consultation on whether their use stifles entrepreneurship by preventing workers from starting up their own business after leaving a job. Restrictive covenants are commonly used in employment contracts to prohibit ex-employees from competing with their previous employer by soliciting or dealing with their clients or poaching their remaining staff. As a matter…