Restrictive covenants

Restrictive Covenants

No business can afford to have its confidential information end up in the hands of a competitor, or for its customers and staff to be poached. However, this kind of damage can be caused any time an employee leaves and joins a competing business if there are no restrictive covenants in place.

Restricting employees from using connections with customers and suppliers, and from misusing confidential information after they have left, is vital to the future protection of your business.

Our specialists have extensive experience of advising businesses on the enforcement of employee restrictive covenants and on employee duties of confidentiality, both in relation to individuals and team moves. We can advise you on the things you must do to reduce the risk of damage to your business occurring and, if it does, what you can do to protect your business.

We can also:

  • take urgent action to enforce restrictive covenants through the courts via injunction;
  • advise on how to reduce the impact of a claim made against you; and
  • advise on how to reduce the threat of a claim arising through a review of the recruitment process.

 Watch our on-demand webinar – Protecting business value

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Case examples
  • Our client’s former managing director took confidential information and set up a competing business, intending to destroy our client’s company by taking all its customers and suppliers with him. We made an urgent application for a search and seize order, and other injunctions, permitting our client to search the home of its ex-managing director to copy and secure evidence and stop him from destroying our client’s company.
  • Our client suspected one of its senior management team had lied at his exit interview and had left to join a competitor. Working with forensic computer experts we obtained evidence showing it was highly likely the ex-employee had taken confidential information, intending to misuse it for the benefit of his new employer. Within days of first instruction we obtained a search and seize order as well as other injunctions against the ex-employee and his new employer, which prevented further harm and secured evidence. In six months we had secured a seven figure settlement sum for our clients as well as legal costs.
  • When a large number of our client’s senior management team left the business, our client was suspicious. Forensic computer experts reconstructed fragments of emails from our client’s computer system showing that in the previous six months the senior management team had conspired with our client’s main competitor to set up a new company, in competition with our client, and take our client’s customers, suppliers and staff. We urgently obtained multiple search and seize orders and injunctions permitting us to search the ex-employees’ homes to secure evidence. Within 12 months we had secured a multi-million pound settlement.