Include restrictive covenants in a contract of employment

Key points

• A restrictive covenant is generally used to prevent employees from doing certain things after leaving the organisation, such as setting up in competition or poaching clients.
• When including a restrictive covenant in a contract of employment, an employer should understand that, as it is a restraint of trade, it will be enforceable only if it is necessary to protect its legitimate interests.
• The employer must make sure that the restrictive covenant is relevant, proportionate and reasonable.

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