Restrictive covenants

In an increasingly challenging commercial and economic environment, it is more important than ever for businesses to protect their technology, customer relationships, and confidential information in order to remain competitive. Speed and cost are often at the forefront of claims concerning restrictive covenants, and we provide swift, effective and efficient advice on team moves, confidential information, employee competition, and other related issues.

Enforceable restrictive covenants for businesses

Setting out restrictive covenants in an employment contract can be a very effective way for businesses to safeguard confidential information. They can be used to deter an employee from competing unfairly against a former employer, soliciting the custom of an employer’s clients or prospective clients, poaching key staff, or dealing with customers and suppliers for reasonable periods of time.

All too often, however, businesses use template covenants that are not appropriate for their commercial needs, and which will not be upheld in court. Despite what is often heard, these covenants are enforceable; but only if properly drafted.

Outstanding knowledge and experience with the ability to deliver advice in easy to understand and clear terms. I feel very confident using Penningtons. Their response time is exceptional.

As Penningtons Manches Cooper acts for both senior executives and employers, we are well equipped to offer a broad perspective on this often highly contentious area of employment law. We assist businesses at the point of potential recruitment, assessing the enforceability of the proposed recruit’s current restrictions and/or drafting tailored covenants to meet legitimate business needs. We also provide strategic advice when an employee has removed confidential information or resigns, often with others, to join a competitor. We are frequently instructed to take rapid action to enforce restrictive covenants, as time is often of the essence.

Our solicitors work seamlessly with experts in other practice areas. In particular, we regularly draw on the specialist knowledge of members of our dispute resolution team, who have extensive experience in High Court procedures.

How we help our clients

Guidance on recruiting individuals or a team from a competitor

Advice on garden leave and enforceability of restrictive covenants

Confidentiality provisions

Responding to the departure of a key individual

Enforcement action, for example, injunctions (including springboard injunctions) and remedies

Penningtons set out the options and discuss them with us, so that as the client we feel that we understand the issues fully and are aware of our options.

Penningtons Manches Cooper guide us with a confident and risk-averse approach that gives us huge peace of mind and confidence to take action on key strategic decisions.

The firm’s knowledge and confident advice is very reassuring. Their advice has always been excellent.

Recent work highlights

Groundbreaking High Court application

Leading the first High Court challenge to the legitimacy of covenants based on the prevalence of social and professional media.

Senior executive departure at global firm

Advising a global chemical manufacturer on the departure of a senior executive, from issuing an application to the court for breach of restrictive covenants, through to an agreed resolution including costs.

Triple line of defence for recruitment client

Obtaining three sets of undertakings for a client in the recruitment sector following team and individual moves to a competitor firm.

Team departure and injunctive relief

Advising on matters relating to confidential information and restrictive covenants as a result of a whole team leaving and setting up a rival company, including successfully applying for injunctive relief.

Search and seize order

Successfully securing a search and seize order for a leading pharmaceuticals company, in order to find and secure crucial evidence in support of an ongoing case.