Employers wishing to protect their confidential information and their relationships with clients, suppliers and employees frequently rely upon restrictive covenants, often referred to as post-termination restrictions (PTRs).
These are provisions which seek to restrict what individuals can do when after they leave their employer.
Restrictive covenants will only be enforced by the English courts if they are no wider than is necessary to protect the employer’s legitimate business interests. Careful drafting is essential but difficult as the legal position evolves when new cases are heard in the appellate courts. It is common for businesses not to focus on restrictive covenants sufficiently until they have a dispute.
Team moves are when two or more individuals seek to leave their employer and join a new one at the same time. They can be hugely damaging to a business.
We advise employers, senior executives and teams on restrictive covenants, including related disputes and team moves. We understand that no two cases are the same and that practices and norms vary from sector to sector and even within different parts of a sector such as financial services. We also understand the impact these disputes can have on a business.
Restrictive covenant disputes can be very costly. Taking advice at the earliest juncture is recommended and can save costs later on.